Petronas Gas’ Subsidiary PLNG2 Issues MYR 1.7 Billion Sukuk; Oversubscribed Three Times

Malaysian energy company Petronas Gas’ (PetGas) 65% owned subsidiary, Pengerang LNG (Two) Sdn Bhd (PLNG2) has successfully concluded a Sukuk Murabahah issuance amounting to MYR 1.7 billion under its Islamic Medium-Term Notes Programme. The Sukuk Murabahah, which was issued in 20 tranches with tenures ranging between one and 20 years, will be used by PLNG2 for Shariah-compliant purposes, primarily to repay the company’s outstanding USD-denominated shareholders’ loans in full, according to local media reports.

The Sukuk Murabahah was oversubscribed by just over three times, which is reflective of the market’s confidence in the credit strength of the company which is rated AAA by Malaysian Rating Co...