S P Setia sets up RM4bil Islamic financing schemes


MARC Ratings has given the senior sukuk wakalah and perpetual sukuk wakalah preliminary ratings of AAIS and A IS, respectively.

KUALA LUMPUR: S P Setia Bhd has established two major Islamic financing programmes with a combined nominal value of RM4bil.

In a filing with Bursa Malaysia, the property developer said it had lodged the necessary documents with the Securities Commission for the implementation of a sukuk wakalah programme of up to RM3.5bil and an Islamic commercial papers (ICP) programme of up to RM500mil.

S P Setia also announced the establishment of a Sustainability Financing Framework to provide transparency and disclosure to the investors and stakeholders on its undertakings to issue or raise instruments in a “use of proceeds” – that is green, social and/or sustainability – format.

The sukuk wakalah programme allows for the issuance of both senior Islamic medium-term notes (senior sukuk wakalah) and subordinated perpetual Islamic notes (perpetual sukuk wakalah).

The tenure of the programme will be perpetual unless cancelled, and the first issuance will be made within 90 business days from yesterday, it said.

MARC Ratings has given the senior sukuk wakalah and perpetual sukuk wakalah preliminary ratings of AAIS and A+IS, respectively.

Meanwhile, the ICP programme will have a tenure of seven years, and individual ICP issuances will range from one to 12 months in tenure.

The first issuance will also be made within 90 business days, S P Setia said, adding that the programme had received a top-tier short-term preliminary rating of MARC-1IS from MARC Ratings.

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