RAM Ratings Sees Infrastructure, Power Projects Propelling Sarawak's Growth

KUALA LUMPUR, Aug 24 (Bernama) -- RAM Rating Services Bhd, the Malaysia's leading credit-rating agency sees large infrastructure and power projects propelling east Malaysian state Sarawak's growth and funding opportunities. Chief Executive Officer Foo Su Yin said the Malaysian debt capital market will play an instrumental role in funding Sarawak's economic progress. "Since 1993, RAM has cumulatively rated about US$7.68 billion (RM31 billion)of bond and sukuk programmes from Sarawak-related issuers (with about RM18 billion currently outstanding)," he added in a statement. The power sector has fuelled many transactions and accounted for about 85 per cent of the bonds and sukuk related to Sarawak. Recently, RAM-rated Sarawak Hidro Sdn Bhd (a wholly-owned subsidiary of the Minister of Finance Incorporated Malaysia) raised a US$1.36 billion (RM5.5 billion) sukuk to partially refinance debts related to the Bakun Dam, the embankment dam in Sarawak. "Year-to-date, this is the largest rated corporate sukuk issuance in the Malaysian debt capital market. "As for infrastructure development in Sarawak, it is gaining momentum and the Malaysian debt capital market will continue playing a vital part in this," said RAM Deputy Chief Executive Officer, Promod Dass. RAM also noted that construction companies, such as Cahya Mata Sarawak Bhd will benefit from the high-impact projects over the next few years. --BERNAMA