FGV issues first sukuk Murabahah programme

KUALA LUMPUR: FGV Holdings Bhd has made the first issuance of RM500 million nominal value Sukuk Murabahah pursuant to the Sukuk Murabahah Programme on Dec 31, 2021.

In a filing with the Bursa Malaysia today, the plantation company said proceeds raised from the issuance have been utilised by FGV to refinance its existing financing or borrowing.

"For avoidance of doubt, the utilisation of the proceeds of the Sukuk Murabahah Programme shall at all times be for Shariah-compliant purposes.

"The RM500 million Sukuk Murabahah issuance will not have any effect on the issued and paid-up share capital of FGV and/or the substantial shareholders’ shareholding in FGV,” it said.

In December last year, FGV lodged with the Securities Commission Malaysia (SC) to establish the sukuk programme after receiving an endorsement from the SC’s Shariah Advisory Council for the programme on December 10.

The Sukuk Murabahah programme would have a tenure of eight years from the date of its first issue which shall be made within 60 business days from the date of lodgement with the SC while each individual issue of sukuk under the programme will have a tenure of one to eight years.

At close today, shares of FGV was flat at RM1.50 with 1.99 million shares traded. - Bernama