Sunway establishes RM10 billion sukuk programme

PETALING JAYA: Sunway Bhd, which announced a RM1.1 billion project in the Kuala Lumpur city centre last week, has established an Islamic Medium-Term Note Programme of RM10 billion in nominal value.
Proceeds from the sukuk programme will be used, among others, to finance the investment activities, working capital requirements and/or general corporate purposes of the issuer and/or Sunway and/or its subsidiaries.
The group told Bursa Malaysia that the first issuance of the notes was made on July 17. The notes, which will have a tenure of up to 100 years, allow Sunway to issue different tranches from time to time that may be unsecured or secured with different pools of assets/securities during the tenure of the sukuk programme. 
The bonds are unrated and can be issued under the syariah principle of Wakalah Bi Al-Istithmar or Mudharabah (profit sharing). Upon issuance, the bonds are transferable and tradeable.
Sunway on May 9 lodged with the Securities Commission Malaysia the required information and relevant documents relating to the sukuk programme pursuant to the Guidelines on Unlisted Capital Market Products Under the Lodge and Launch Framework.
Kenanga Investment Bank Bhd is the sole principal adviser, and together with HSBC Amanah Malaysia Bhd, the joint lead arrangers and joint lead managers for the sukuk programme.
Sunway shares rose 10 sen to close at RM4.06 yesterday on some 5.69 million shares done, bringing it a market capitalisation of RM8.45 billion.