MHB raises $85.7M sukuk to fund capex and project pipeline
What's the deal? Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has completed a US$83.7M sukuk murabahah issuance to fund capital expenditure, working capital and general corporate purposes. The deal, completed on November 6, falls under the group's existing US$239.1M sukuk murabahah programme.
The details: The issuance came in two series — a three-year US$31.1M tranche at 4.48% per annum, and a five-year US$52.6M tranche at 4.69%. Both are unsecured, unguaranteed, and rated AA-IS with a positive outlook by MARC Ratings. HSBC Amanah Malaysia acted as sole coordinator, with HSBC and Maybank Investment BankDealroom has a profile for this one. Try Dealroom → as joint lead managers.
Why now? The financing lands as MHB's heavy-engineering business gains momentum. First-half 2026 revenue rose to US$358.7M and pretax profit to US$18.1M, lifted by projects including the Kasawari carbon-capture topside and PTTEPDealroom has a profile for this one. Try Dealroom →'s Marginal Field Design Platform.
What's the endgame? The company has been building its order book, securing a Sarawak Shell fabrication contract worth US$66.5M and, with Technip, a substantial Petronas offshore gas-development contract. The sukuk gives it capital to service that pipeline.
What could go wrong? MHB said the issuance will increase its borrowings and gearing and generate financing costs over the sukuk's tenure. It expects no immediate material effect on consolidated net assets or earnings per share, and the AA-IS rating offers some reassurance.
The signal: This is a financing step rather than an equity raise or growth announcement — a well-timed move to back a strengthening project pipeline with cheaper, shariah-compliant debt.
Read more: klsescreener.com
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