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China's BEWG's RM400m sukuk fully subscribed
27 Jul 2017, 12:50 pm
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KUALA LUMPUR (July 27): China-based water treatment company BEWG (M) Sdn Bhd's RM400 million Sukuk Wakalah has been fully subscribed. 

The sukuk, which made its debut on July 19, 2017, is the first ever ringgit denominated sukuk for water infrastructure funding issued by a Chinese conglomerate.

BEWG will use the sukuk to partly finance the refurbishment and upgrading of the water treatment plant in Bukit Sah, Kemaman, Terengganu.

The total costs of the project is approximately RM687 million.

The firm is the build contractor for the refurbishment and upgrading of the Bukit Sah water treatment plant.

"This is BEWG's first ever debt capital market instrument and the first ringgit denominated sukuk by a China-owned company for water infrastructure funding.

It is also the largest ringgit denominated sukuk issuance by a China-owned company to date," said BEWG Malaysia CEO, Datuk Vence Ong Kian Min.

He said the issuance has also enabled the Beijing Enterprises group to diversify its funding sources in Malaysia, which has so far been limited to bank loans. 

BEWG Malaysia is a wholly-owned indirect subsidiary of Beijing Enterprises Water Group Ltd, and was incorporated to undertake water treatment projects in Malaysia.

CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for the Sukuk Wakalah.

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