IHH Healthcare
Bhd via its subsidiary, Pantai Holdings Sdn Bhd, has issued its inaugural
Sukuk, worth RM4 billion, under a newly established RM15 billion Sukuk Wakalah
Programme.
This programme
offers the group a strategic avenue to diversify its funding sources,
strengthening its growth initiatives in Malaysia.
Furthermore,
the programme is designed to enable the issuance of both sustainability and
sustainability-linked sukuk, in alignment with the group's capital management
and sustainability goals.
The proceeds
from this initial sukuk issuance are to fund the acquisition of the 600-bed
capacity Island Hospital, which was announced in early September this year.
IHH Healthcare
group chief executive officer, Dr. Prem Kumar Nair said Island Hospital is a
highly attractive asset with strong operations in Penang, a fast-growing
market, and supported by a large specialist pool and clinical offerings with
strong operational metrics.
"This
acquisition creates a medical tourism powerhouse to support the country's
aspirations, as Island Hospital is the leading medical tourism hospital in
Malaysia. The acquisition also demonstrates continued investment in IHH
Healthcare's home market with strong growth, leveraging on Pantai's proven
operating track record and successful M&As," he said.
IHH Healthcare
group chief financial officer Dilip Kadambi said the acquisition of Island
Hospital allows the group to build on its leadership position in Penang while
also providing a platform for future growth with capacity expansion and
greenfield opportunities in addition to being financially attractive and return
on equity accretive.
"This
transaction was financed through the group's first ever issuance of RM4 billion
unrated Sukuk through the Sukuk Programmes at optimal pricing and is one of the
largest Sukuk issued years to date in Malaysia," he said.
Notably, the
Sukuk issuance has received tremendous support, achieving a subscription rate
exceeding four times the issuance size.
OCBC Al-Amin
Bank Bhd acted as the sole principal adviser, lead arranger, sustainability
structuring adviser, shariah adviser, facility agent, and lead manager for the
sukuk programmes.
The bank's
senior banker and head of investment banking, Tan Ai Chin, said OCBC's
significant role in this landmark transaction demonstrates its strategic client
relationship in supporting IHH Healthcare from the inception to becoming one of
the largest private healthcare providers in the world.
OCBC is an
existing sole financier to Island Hospital, supporting them through the entire
development journey to becoming a formidable healthcare provider in Penang, he
said.
"This
demonstrates OCBC's strong coverage and expertise in the healthcare sector and
our continued pioneering effort in facilitating cost-effective sustainable
financing solutions in supporting our valued clients like IHH Healthcare in
their growth journey."