IHH Healthcare Bhd (“IHH Healthcare” or the “Group”) via its subsidiary, Pantai Holdings Sdn Bhd (“Pantai”), has successfully debuted its first Sukuk issuance of RM4.0 billion (“Sukuk issuance”) under its newly established Sukuk Wakalah Programmes of up to RM15.0 billion (“Sukuk Programmes”). OCBC Al-Amin Bank Berhad (“OCBC”) acted as the sole Principal Adviser, Lead Arranger, Sustainability Structuring Adviser, Shariah Adviser, Facility Agent and Lead Manager for the Sukuk Programmes.

IHH Healthcare is a world-leading integrated healthcare provider with a legacy spanning over 5 decades and presence in 10 countries, including Singapore, Malaysia, Turkiye, India and Greater China (including Hong Kong). The Group’s Malaysian operations own a network of 17 hospitals featuring established brands such as Gleneagles, Pantai, Prince Court and Timberland with a total capacity of over 3,000 licensed beds, making it one of the largest private healthcare networks in Malaysia.

The establishment of the Sukuk Programmes offers a timely opportunity for the Group to diversify its funding sources in pursuit of its growth ambitions in Malaysia. In addition, the Sukuk Programmes have been structured with the flexibility to issue sustainability and sustainability-linked Sukuk to complement the Group’s capital management practices and make good of the Group’s commitment to “create a healthier, more sustainable future”.

The proceeds from this initial Sukuk issuance are to fund the acquisition of the 600-bed capacity Island Hospital which was announced in early September this year. Notably, the Sukuk issuance has received tremendous support, achieving a subscription rate exceeding four times the issuance size. The Joint Lead Managers for this Sukuk issuance are CIMB Investment Bank Berhad, HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad, OCBC, RHB Investment Bank Berhad and United Overseas Bank (Malaysia) Berhad.

Dr Prem Kumar Nair, Group Chief Executive Officer, IHH Healthcare Berhad, said: “Island Hospital is a highly attractive asset with strong operations in Penang, a fast-growing market, and supported by a large specialist pool and clinical offerings with strong operational metrics. This acquisition creates a medical tourism powerhouse to support the country’s aspirations as Island Hospital is the leading medical tourism hospital in Malaysia. The acquisition also demonstrates continued investment in IHH Healthcare’s home market with strong growth, leveraging on Pantai’s proven operating track record and successful M&As.”

Dilip Kadambi, Group Chief Financial Officer, IHH Healthcare Berhad, said: “The acquisition of Island Hospital allows IHH Healthcare to build on its leadership position in Penang while also providing a platform for future growth with capacity expansion and greenfield opportunities in addition to being financially attractive and ROE accretive. This transaction was financed through the Group’s first ever issuance of RM4 billion unrated Sukuk through the Sukuk Programmes at optimal pricing and is one of the largest Sukuk issued year to date in Malaysia. The issuance was well supported by local and foreign banks and structured through multiple tenors and tranches which allows IHH Healthcare to maximise its cash flows and liquidity deployment from a debt servicing perspective.”

Ms Tan Ai Chin, Managing Director, Senior Banker and Head of Investment Banking, OCBC, said: “OCBC is honoured to play a pivotal role as the Sole Principal Adviser and Lead Arranger for Pantai’s maiden Sukuk Programmes. Our significant role in this landmark transaction, clearly demonstrates our strategic client relationship in supporting IHH Healthcare from the inception to becoming one of the largest private healthcare providers in the world. OCBC is also an existing Sole Financer to Island Hospital, supporting them through the entire development journey to becoming a formidable healthcare provider in Penang. This demonstrates OCBC’s strong coverage and expertise in the healthcare sector and our continued pioneering effort in facilitating cost effective sustainable financing solution in supporting our valued clients like IHH Healthcare in their growth journey”