The Malaysian National Higher Education Fund or Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) issued two Sukuk papers worth RM1.5 billion (US$322.52 million) combined. The facilities will be channeled toward the provision of Islamic educational financing.
The facilities, joint lead arranged by CIMB Investment Bank and Maybank Investment Bank, are worth RM1.39 billion (US$298.86 million) and RM105 million (US$22.58 million) each. They carry coupon rates of 4.06% and 3.95% respectively with tenors of 10 and 13 years.
The Sukuk papers represent PTPTN’s 10th and 11th series issuances under its RM5 billion (US$1.07 billion) government-guaranteed Sukuk Murabahah program established in 2014.
Under the Sukuk structure, the Malaysian government has unconditionally guaranteed the facilities under the program, ensuring the punctual repayment of the Sukuk.
According to Bank Negara Malaysia data, the Sukuk Murabahah program has a remaining limit of RM1.2 billion (US$258.1 million) with RM3.8 billion (US$817.04 million)-worth of Sukuk outstanding.
PTPTN’s sizeable issuance is in tandem with its previous capital market activities, with the higher education fund selling RM1.5 billion-worth of Sukuk in March last year in a four-series issuance.
Notably, ISFI previously reported that PTPTN has had a preliminary meeting with its fund manager regarding the possibility to establish an SRI Sukuk program due to its use of funds falling under the parameters of social finance.
While its fund manager has recommended the establishment of an SRI Sukuk program, a spokesperson from the higher education fund confirmed to ISFI that SRI Sukuk are not a priority for PTPTN in the near future.
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Perbadanan Tabung Pendidikan Tinggi Nasional’s July 2023 Sukuk RM1.5 billion (US$322.52 million)  31st July 2023 |
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| Summary of terms and conditions | |
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Issuer |
Perbadanan Tabung Pendidikan Tinggi Nasional |
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Guarantor |
Government of Malaysia |
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Size of issue |
Tranche 1: RM1.39 billion (US$298.86 million)
Tranche 2: RM105 million (US$22.58 million)
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Mode of issue |
Bookbuilding, direct placement and bought deal |
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Purpose |
For the provision of Islamic educational financing. |
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Tenor |
Tranche 1: 10 years Tranche 2: 13 years |
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Profit rate |
Tranche 1: 3.95% Tranche 2: 4.06% |
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Payment |
Semi-annual |
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Currency |
Malaysian ringgit |
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Maturity date |
Tranche 1: 29th July 2033 Tranche 2: 31st July 2036 |
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Lead manager(s) |
CIMB Investment Bank, Maybank Investment Bank |
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Principal advisor(s) |
CIMB Investment Bank, Maybank Investment Bank |
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Governing law |
Malaysian law |
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Legal advisor(s)/council |
Adnan Sundra & Low |
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Islamic structure |
Murabahah |
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Underlying asset |
Shariah compliant assets |
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Shariah advisor(s) |
CIMB Investment Bank, Maybank Investment Bank |