KUALA LUMPUR: ISP Group of Companies has secured its landmark RM2 billion asset-backed securitisation (ABS) sukuk wakalah programme with the Securities Commission Malaysia (SC).
This RM2 billion ABS sukuk wakalah programme will be established via Visionary Heritage Bhd (VHB), a special purpose vehicle company to undertake the programme.
This initiative marks Malaysia’s first sustainability industrial ABS sukuk wakalah programme, setting a new benchmark in sustainable Islamic financing for industrial property, including logistic warehouses, manufacturing hubs, and worker accommodations.
ISP Group is a property company specialising in logistics warehouses and manufacturing hubs (LWMH) and purpose-built workers’ accommodations (PBWA).
ISP Holding Sdn Bhd (IHSB) founder and group CEO Eric Ng said the launch of Malaysia’s first sustainability industrial ABS sukuk wakalah programme is a transformative milestone in the company’s journey as an LWMH and PBWA specialist.
“This programme underscores our dedication to ethical financing and sustainable development, providing us with a robust financial framework to pursue our strategic goals.
“It also enables us to connect with like-minded investors who share our vision of creating meaningful and lasting impact on our society at large,“ he said in a statement.
Proceeds from the ABS sukuk waka lah programme will support ISP Group’s strategic initiatives, including expanding its footprint in the LWMH and PBWA segments, driving innovation and technology adoption in this space, and supporting community-focused programmes that uplift the well-being of the communities it serves.
“We fully support the government’s move to introduce a star rating system for industrial parks in 2025, and we believe that ISP Group can contribute positively towards elevating the standards of the industrial parks where our assets are located, especially in the infrastructure and sustainability metrics,“ Ng commented on the recently announced rating system being developed by Sirim in collaboration with the Ministry of Investment, Trade and Industry (Miti).
IHSB sponsors the programme, with CIMB Investment Bank Bhd acting as the sole principal adviser, lead arranger, lead manager and sustainability structuring coordinator.
CIMB Islamic acts as the programme’s Shariah adviser, advising on Shariah-related matters, while Messrs Lee Choon Wan & Co acts as the legal counsel to the sole principal adviser, sole lead arranger, and lead manager, providing essential legal support to facilitate the programme’s implementation.
The ABS sukuk wakalah programme is a multi-currency industrial asset-backed Islamic medium-term notes programme based on the Shariah principle of Wakalah Bi Al-Istithmar.
The programme provides flexibility for issuing rated or unrated sukuk wakalah, as well as Asean Green, Asean Social, Asean Sustainability or Sustainable and Responsible Investment (SRI) Sukuk Wakalah, adhering to the SC’s guidelines.
Structured with perpetual programme tenure, the programme allows issuances during the programme subject’s tenure to fulfil all the relevant conditions precedent.
The programme terms also include an option to increase the programme limit, which is currently RM2 billion.
The first issuance under the programme, set to be branded as the Asean Green Sukuk Wakalah, will be backed by a high-value industrial property in Iskandar Puteri, Johor.
Strategically located near major highways and surrounded by established industrial areas such as Nusa Cemerlang Industrial Park, Nusajaya Techpark, and the Southern Industrial and Logistics Clusters (SILC), the property enjoys a prime location in a thriving industrial hub.
The site consists of seven factory units, designed with flexibility to accommodate separate tenants by fencing off individual blocks.
The group has effectively divided the property into six blocks, all fully tenanted by a diverse mix of tenants, including leading Chinese companies and multinational corporations (MNCs).
This ensures stable, diversified income streams and mitigates risk.
With an estimated valuation of approximately RM110 million, this property offers a compelling investment opportunity supported by its strategic location and strong market fundamentals.
Echoing this sentiment, CIMB Bank CEO for group wholesale banking Chu Kok Wei said this initiative reflects the bank’s shared commitment to driving the sustainability agenda while fostering innovation in Islamic finance.
“The structure exemplifies flexibility and sets a new industry benchmark,“ he said.
The programme launch follows ISP Group’s recent acquisition of RM188.5 million worth of strategic industrial assets, including a site and a brownfield site in Johor and sites in Selangor.
Following the acquisition, ISP’s portfolio now includes eight LWMH assets with a total gross floor area of 2.3 million square feet.
Ng said the launch of Malaysia’s first sustainability industrial ABS sukuk wakalah programme is a transformative milestone in the company’s journey as an LWMH and PBWA specialist.
