SapuraKencana up 1.2% after obtaining US$2.3b Islamic loan



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KUALA LUMPUR (Jan 16): SapuraKencana Petroleum Bhd rose as much as 1.2% after its wholly-owned subsidiary obtained a US$2.3 billion (RM8.2 billion) Islamic loan, placing the firm on track to be syariah-compliant.

At 11.19 am today, SapuraKencana (fundamental: 1.3; valuation: 1.8) rose 2 sen or 0.8% to RM2.46 on trades of some 3.6 million shares. It had earlier hit a high of RM2.47.

A research analyst told that she was positive on the Islamic loan secured by SapuraKenanca.

“We are positive as it gives the firm more investing opportunities to the Malaysian investor community when it becomes syariah-compliant,” she said over the telephone.

A research analyst from Hong Leong Investment Bank Research also expressed optimism, noting SapuraKencana’s plan to be relisted on the Securities Commission Malaysia’s (SC) next review of syariah-compliant securities in May.

“Being syariah-compliant would enable the firm to be more easily accessible by syariah-compliant funds,” he spoke by phone.

Both research analysts made no changes to their ratings and target price for the stock, saying the development has already been taken into account in their respective analysis.

Yesterday, SapuraKencana’s wholly-owned unit SapuraKencana TMC Sdn Bhd signed the Islamic facility agreement to convert a portion of its existing conventional multi-currency facility borrowings into a facility based on the syariah principle of Murabahah.

The transaction was completed with 11 local, regional and international banks, which according to a major bank involved in the deal, represented the largest Islamic facility in Malaysia to date.

The Edge Financial Daily had reported on December 1 last year, quoting sources, that SapuraKencana planned to be back on the SC’s list after it failed to meet one of the three criteria to be syariah-compliant in November.
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