OCK proposed RM500mil ICP programme

KUALA LUMPUR: OCK Group Bhd has proposed to undertake the issuance of an Islamic commercial papers programme (ICP programme) based on the Shariah principal of Wakalah Bi Al-Istithmar.

In a statement, the telecommunications network solutions provider said the ICP programme is expected to raise up to RM500mil in nominal value over a tenure of seven years from the date of the first issuance.

The drawdown is expected to be in tranches and each tranche will have a tenure of up to 12 months. The ICP programme has received accreditation from MARC Ratings Bhd, obtaining a preliminary short-term rating of MARC-1.

OCK said the proceeds will be used to restructure existing short-term financing and/or borrowings as well as to finance general working capital.

Group managing director Datuk Wira Sam Ooi Chin Khoon anticipates a rise in telecommunications activities, given the current state of our network infrastructure and the ongoing rollout of the 5G network.

“This ICP programme will enable us to capitalise on new opportunities ahead as well as accelerate the deployment of network infrastructure to fortify our position in the telecommunication space.

“As we expand our operations, we remain committed to sustainability and corporate responsibility and we want to ensure that our growth is aligned with the best interests of our stakeholders and the environment. This strategic move is a testament to our robust financial planning and dedication towards driving innovation in the digital era,” Ooi said.

Hong Leong Investment Bank Bhd is the principal adviser, lead arranger, lead manager, lodgement party and the facility agent for the ICP programme.