Malaysia Steel Manufacturer   

Financial Highlights

Home / Sukuk Ijarah Programme

MASTEEL’s Sukuk Ijarah is being guaranteed by Danajamin and consequently, Malaysian Rating Corporation Berhad (“MARC”) has on the 21st of November 2018 assigned a final financial guarantee supported rating of AAA IS(fg) with a stable outlook to the Company’s proposed Sukuk Ijarah Programme. The Company is indeed pleased to announce that its Sukuk Ijarah Issuance has been oversubscribed by approximately 30%.

The funds available from this issuance shall be used for the repayment of existing term loans, funding of general working capital requirements, and for the acquisition of a melting technological package which will significantly improve the conversion costs of the Company’s steel billets and fortify its competitiveness in the foreseeable future.

The injection of additional working capital funds into the Company will not only improve its liquidity position, but also allow it to scale up its operations in line with the installation of the new technological package.

Furthermore, in an environment of rising interest rates, the Company is diversifying a portion of its loans from floating-rates to a fixed-rate for a significant portion of its long-term debts in order to minimize the Company’s interest rate risks. The Company foresees this mix of financing will allow the Company to have a more efficient cost of capital.

Due to the robust shareholders’ funds of the Company, the issuance of the Sukuk Ijarah of RM130 Million in nominal value only increased the Company’s Gearing Ratio marginally from 0.46 times (as at 30 September 2018) to 0.61 times.

This announcement is dated 30 November 2018.


Back to Top