IOI Properties proposes RM1.5b Sukuk

KUALA LUMPUR: IOI Properties Group Bhd has proposed to set up an unrated Islamic medium term note programme of up to RM1.5bil in nominal value.

The property company had on Friday said it had submitted an application to the Securities Commission in relation to the Sukuk programme.

“The Sukuk programme shall have a tenure of up to 15 years from the date of the first issuance of the unrated Islamic MTN (Sukuk Murabahah) under the Sukuk programme,” it said.

IOI Properties said from the first issuance of the Sukuk Murabahah of up to RM750mil, the proceeds would be used to refinance an existing bridge loan facility granted by Malayan Banking Bhd.

As for the subsequent issuances of the Sukuk Murabahah, the proceeds would be used to finance land and development costs, investment and working capital.

IOI Properties said the principal adviser, lead arranger and lead manager for the Sukuk programme is Maybank Investment Bank Bhd.