Malaysia Airports Eyes USD$825 Mln Bond Issues
Airport operator Malaysia Airports will tap the bond market at the end of June for funds to build the country's second low-cost carrier terminal and to refinance existing debts.
Malaysia Airports aims to raise MYR2.7 billion ringgit (USD$824.9 million) by issuing MYR1 billion in Islamic bonds and USD$500 million in conventional bonds, sources with direct knowledge of the deal said on Friday.
"The market is choppy right now but we're looking to issue at the end of June," one source said.
The state-owned firm, valued at USD$1.6 billion, plans to use MYR2.2 billion for the construction of the airport, expected to be completed in 2012, and MYR500 million for debt refinancing.
The pricing and tenure of the bonds will only be determined when the roadshow starts sometime in the middle of June, said the sources.
The new low-cost terminal will be built near Malaysia's main KL International Airport and is capable of handling 30 million passengers a year. Malaysia presently has one low-cost carrier terminal also near the main airport, about 60 kilometres outside of capital Kuala Lumpur.