Mah Sing Group completes issuance of RM100m Sukuk

The company will be using the proceeds from the Sukuk for future investments and general working capital, including its glove production venture and healthcare segment.

KUALA LUMPUR: Mah Sing Group Bhd has completed its proposed convertible Sukuk with the issuance of RM100mil Sukuk on Tuesday.

The issuance of the nominal value of seven-year redeemable convertible Sukuk Murabahah carries a fixed profit rate of 3% per annum payable semi-annually.

The company will be using the proceeds from the Sukuk for future investments and general working capital, including its glove production venture and healthcare segment.

Earlier, Mah Sing said it has set a target production date for its gloves in April 2021, eight months from the initial date of August 2020 to cater for the pent-up demand for gloves in the domestic and export markets.

Work at the glove manufacturing factory of 228,800 sq ft, is progressing according to schedule.

The first six production lines will be on track and operational as planned in the second quarter of 2021.

This will be followed by another six lines expected to be ready in the third quarter.

The company said the 12 production lines are a part of its proposed phase one diversification into glove-making.

It will have a maximum capacity of up to 3.68 billion pieces of gloves per year – at a speed of 38,000 pieces of gloves per production line per hour, the company said.

The capital expenditure for the first phase of the proposed rubber gloves business is estimated to be RM160mil.

It is also targeting a second phase of the proposed expansion plan when demand outstrips supply for phase one.

The second phase could accommodate 12 more new production lines and increase the capacity to 3.68 billion more pieces of gloves per year.