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KUALA LUMPUR (March 18): Lembaga Tabung Haji (TH) said it is nearing resolution with the government over the RM12.5 billion sukuk redemption by Urusharta Jamaah Sdn Bhd (UJSB) due in May, which is carried on its books as part of its 2018 restructuring exercise.
An announcement could be made "very soon", said chairman Tan Sri Abdul Rashid Hussain during a media briefing on Wednesday.
"There is already a happy solution according to market practices and it is not going to be any interruption on any issue," Abdul Rashid said.
“We’ve been working very nicely with the government and I think both sides are going to have a good, common-sense approach to this,” he said.
The sukuk is part of a restructuring exercise at Tabung Haji back in 2018, when it transferred underperforming or non-core assets to UJSB — a Ministry of Finance Inc unit — in 2018 in exchange for sukuk and other financial instruments to offset its net liabilities position and allow it to pay distributions to its depositors.
Under the exercise, Tabung Haji transferred approximately RM9.7 billion worth of assets to UJSB in late 2018 while UJSB issued two sukuks worth RM19.6 billion and injected an additional RM300 million in cash.
The first tranche of sukuk issued under the exercise — with a nominal value of RM12.5 billion — is scheduled to mature on May 29.
UJSB was given a 10-year mandate to rehabilitate the assets. At end-2024, its investment asset value stood at RM11.44 billion, according to a parliamentary reply by MOF in November.
When asked at the briefing whether the potential return by UJSB to Tabung Haji would involve all or only selected assets, Abdul Rashid indicated that the process is more nuanced.
“Not so simple, but I think we’re working towards a solution to make sure that effectively the safety of our depositors is never going to be compromised,” he said.
Of the transferred assets, 80% were equities while the remaining 20% comprised properties.
Among the assets transferred to UJSB were four Tabung Haji hotels: TH Hotel Kota Kinabalu, TH Hotel Bayan Lepas, TH Hotel and Convention Centre Alor Setar, and TH Hotel and Convention Centre Kuala Terengganu. These properties have since been rebranded under the Raia Hotel name.