PETALING JAYA: AEON CREDIT SERVICE (M) BHD is setting up a RM2bil sukuk programme to fund disbursements to customers and to refinance any of its existing loans, financing or sukuk.
In a filing with the stock exchange, it said the group had lodged the sukuk programme with the Securities Commission (SC).
The programme is pursuant to the SC’s guidelines on unlisted capital market products under the lodge and launch framework.
The group said programme, under the syariah principle of wakalah bi-al istithmar and murabahah (via a tawarruq arrangement), provides it with the flexibility to issue both senior sukuk and/or subordinated sukuk from time to time.
The issuance is subject to the aggregate outstanding nominal amount of the sukuk, not exceeding RM2bil at any point in time.
It said the senior sukuk under the programme had been accorded a rating of AA3 (stable), whilst the subordinated sukuk is rated A1 (stable) by RAM Rating Services.
The group said the subordinated sukuk would be recognised as capital to meet the minimum capital adequacy ratio as set out by Bank Negara, providing it with an avenue to raise a more cost efficient and non-shareholdings dilutive capital.
The net proceeds raised from the programme, it said, are intended to be utilised to fund disbursements to customers in its ordinary course of business of providing consumer financing based on the syariah principle.
CIMB Investment Bank Bhd and Hong Leong Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the sukuk programme, while CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd and MUFG Bank (M) Bhd are the joint lead managers for the programme.
CIMB Islamic Bank Bhd is the syariah adviser for the programme.
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