Published on: Tuesday, April 08, 2014
The Sukuk Musharakah programme provides an Islamic financing platform for the corporation to opportunistically tap the robust liquidity available in the local capital markets.
This financing facility marks the second Shariah-compliant Sukuk programme under the SCC.
The corporation introduced its first Shariah-compliant financing products to its customers in 2010, which also made it the first State Government agency to venture into Islamic Financing.
As at December last year, Islamic Financing constituted RM1.785.3billion or 84.5 per cent of the corporation's financing portfolios.
AmInvestment Bank is acting as the sole principal adviser and lead arranger for the Sukuk Musharakah programmes which comprise a seven-year RM750mil Islamic Commercial Papers programme and a 20-year RM1.5bil Islamic Medium-Term Notes programme, subject to a joint-limit of RM1.5bil.
The Sukuk Musharakah will provide the corporation the flexibility to issue short-term and long-term Sukuk from tenure of one month up to 20 years.
The proceeds from the Sukuk will be utilised by the corporation to fund its Islamic financial business.
RAM Rating Services Berhad has assigned a short-term rating of P1 and long-term rating of AA, to these Sukuk Musharakah programmes.
Chief Minister cum Finance Minister Datuk Seri Musa Aman, who officiated at the launch, said his Ministry fully endorsed and hoped existing and potential investors would subscribe to it.
"SCC has transformed itself from being a government dependent organisation to a self-sustaining agency, and has shown steady and impressive financial performance over the yearsÉsince 2002, SCC has declared over RM185mil in dividends to the State Government, and this is an effort that we must commend," he said.
He said it was through the innovative strategies of synergising people, process and technology that SCC was able to improve its operational efficiency and effectiveness, adding even with the quantum leap in financing, SCC has been able to maximise and enhance its limited human resources effectively.
"This is in line with the State Government's direction of developing human capital that are creative and innovative together with good entrepreneurial skills, allowing for the maximising the value of resources for the continued sustainable development of Sabah," he said.
Beyond these positive steps, he said, it is noteworthy that SCC does not subscribe to a culture that only focuses on making sure that everything is fine as long as there are no losses.
"Instead, SCC has worked to maximise profit and to declare the best possible dividends. This rich vein of entrepreneurship is shown through SCC's consistent and steady improvement in your financial performance over the last 20 years," he said.
"This is a concrete assurance and provides confidence to stakeholders on the stability of the corporation." Musa was also pleased to note that SCC has continued to play a very active role in complementing the government in the socio-economic development of the State under its corporate social responsibility (CSR) programmes.
"I was informed that you have contributed over RM17mil for 128 CSR projects, such as rural hostels at schools, orphanages, half-way homes, centres for single mothers and rehabilitation centres within communities, just to name a few," he said, adding the programmes SCC implemented statewide is a testament that SCC is not just focused on profits but is also a caring and responsible government entity.
SCC has also been providing internship attachment programmes focusing on leadership training for students from local institutions of higher learning, because with the hands-on training, interns are getting a good head-start as they enter the corporate world.
"I hope that other government-linked companies will step up their respective CSR efforts," he said, while very confident that SCC will continue its remarkable performance to attain greater success and achievements.
The event also witnessed the dividend payment of RM25mil and loan repayment of RM21,824.49 by SCC to the State Government through the Finance Ministry.
There were also three CSR presentations namely to SMK Tebobon, Menggatal, for financing its multipurpose open hall costing RM500,000, Rumah Anak Yatim dan Perlindungan, Tuaran, for RM300,000 and RM272,000 to the Kota Kinabalu Widows Association.