UEM Edgenta’s Sukuk Programme Receives AAIS Rating Upgrade, Reflecting Financial Strength and Strategic Progress

UEM Edgenta Berhad (UEM Edgenta), a leading asset management and infrastructure solutions company in the region, has had its Islamic Medium-Term Notes (IMTN) under its RM1.0 billion Sukuk Murabahah Programme, with the outstanding Sukuk standing at RM250.0 million, upgraded to AAIS from AA-IS   by MARC Ratings Berhad (MARC Ratings) for the first time since the rating was first assigned in 2017. This upgrade highlights UEM Edgenta’s strong financial position, consistent business growth, and exceptional operational capabilities across its core segments, including Healthcare Support Services, Property and Facility Management, Infrastructure Services and Asset Consultancy.

In its announcement, MARC Ratings highlighted UEM Edgenta’s sustained ability to generate consistent cash flows, underpinned by its diversified revenue base and long-term contracts. For the first nine months of 2024 (9M2024), newly secured contracts continued to grow, reaching RM2.3 billion (2023: RM2.0 billion), with healthcare solutions contributing 80%. This includes RM900 million worth of contracts for Healthcare Support Services in Singapore, spanning a period of five (5) years.

In infrastructure services, carried out by wholly-owned subsidiary Edgenta PROPEL Berhad, the group benefits from a long-term master maintenance services contract with Projek Lebuhraya Usahasama Berhad (PLUS) for highway maintenance. This contract ensures a stable income stream through 2038. Additionally, the group’s acquisition of a 60% equity stake in United Arab Emirates–based Kaizen Group, a property management company, for RM74.9 million in February 2024, further expands its property and facility solutions portfolio.

MARC Ratings highlighted the Company’s improved credit metrics and effective cost management initiatives, which have contributed to its enhanced risk profile and financial resilience. The rating agency also acknowledged prudent financial management, which has bolstered UEM Edgenta’s liquidity position and debt servicing capacity. For 9M2024, revenue increased by 7.6% y-o-y to RM2.2 billion and pre-tax profit rose by 5.1% to RM65.6 million. Operating margins have remained at around 3%, and the group is undertaking initiatives to strengthen the profitability margin by streamlining operations and leveraging technology to enhance efficiency. The margin improvements are expected to allay concerns over the impact from the minimum monthly wage revision to RM1,700 from RM1,500 effective February 2025.

Commenting on the rating upgrade, Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta, said: “This recognition by MARC Ratings highlights the strength of our strategic direction and unwavering commitment to delivering value to our stakeholders. The AAIS rating reflects UEM Edgenta’s robust financial standing and superior ability to meet its financial obligations, reinforcing our reputation as a trusted leader in the asset management and infrastructure solutions sector. It is a testament to the confidence our clients and partners place in us. Moving forward, we will continue to harness our expertise to drive sustainable growth and deliver impactful, innovative solutions across the markets we serve.”

UEM Edgenta’s RM1.0 billion Sukuk Murabahah Programme has been a cornerstone in supporting its strategic growth initiatives, including investments in technology-driven innovations and sustainability-focused projects. This latest rating upgrade enhances the programme’s appeal, positioning it as an attractive opportunity for investors seeking stable, high-quality investments.

For further information on UEM Edgenta, log on to https://www.uemedgenta.com.