KUALA LUMPUR: Bina Darulaman Bhd (BDB) has issued its maiden RM50mil Sukuk Wakalah, the first tranche of its seven-year RM100mil Sukuk Wakalah Programme.
In a statement yesterday, the Kedah-based property and construction company said the sukuk was based on the underlying syariah principle of Wakalah Bi Al-Istithmar (investment agency).
BDB said it planned to use the proceeds for its general corporate purposes including infrastructure development, potential land bank acquisitions and working capital requirements of existing and future projects.
The sukuk programme was also part of the company’s financial planning to optimise its property arm, currently worth approximately RM1 billion of gross development value, it said.
Group managing director Datuk Izham Yusoff said that the issuance of this sukuk marked a milestone in the group’s financing activities.
In considering the financing options, he said, the board of directors had in August 2016 given the green light for the company to explore a debt funding programme either from bank or debt capital markets.
“Given the long-term nature of our projects, the flexibility, efficiency and pricing of financing structures are critical.
“Our priority is to add value to the company”s financial position and financial performance,” he said.
BDB had on 1 June 2017 lodged with Securities Commission (SC) all required information and relevant documents relating to the Sukuk Wakalah Programme pursuant to SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.
Malaysian Rating Corp Bhd has assigned a short-term rating of MARC-2IS for the sukuk programme.
Maybank Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the programme and Maybank Islamic Bhd is the syariah adviser for it. – Bernama