PETALING JAYA: HCK Capital Group Bhd
plans to establish a sukuk wakalah programme of up to RM2bil as part of its strategy to diversify funding sources and support future business expansion.
In a recent filing with Bursa Malaysia, the property developer said its wholly owned subsidiary, HCK Cap Access Bhd, had lodged the proposal with the Securities Commission Malaysia on Dec 13.
The sukuk wakalah programme is structured under the Islamic financing principle of wakalah bi al-istithmar and will have a tenure of up to 30 years from the date of the first issuance.
Under the structure, proceeds raised will be used for a range of purposes, including refinancing existing borrowings, funding working capital, and supporting future investments across HCK’s subsidiaries and related companies.
“The proceeds of the sukuk wakalah shall be utilised by HCK Cap to invest in the wakalah investments and shall be advanced by HCK Cap to HCK, as the obligor of the sukuk wakalah programme, via syariah-compliant inter-company financing,” it said.
The sukuk wakalah programme consists of both senior and perpetual sukuk tranches.
The senior sukuk has been assigned a final rating of AIS by MARC Ratings, backed by corporate guarantees from key HCK subsidiaries, including HCK Properties Sdn Bhd, Global Activate Sdn Bhd, and Aspen Entity Sdn Bhd.
However, the perpetual tranche remains unrated and unsecured.
CIMB Investment Bank Bhd has been appointed as the sole principal adviser, sole lead arranger, and joint lead manager for the sukuk programme.
CIMB Islamic Bank Bhd will also act as the syariah adviser, while Alliance Islamic Bank Bhd will serve as a joint lead manager for the sukuk’s distribution.
