LBS lodges RM750mil Sukuk Wakalah Programme

The lodgement of LBS’ Sukuk Wakalah programme and the establishment of its inaugural Sustainability Financing Framework demonstrates the group’s humble aspiration towards a responsible, sustainable and socially inclusive future, says LBS executive chairman Tan Sri Ir Lim Hock San.

LBS Bina Group Bhd has lodged a Sukuk Wakalah programme of up to RM750mil in nominal value with the Securities Commission Malaysia.

According to LBS executive chairman Tan Sri Ir Lim Hock San, the lodgement of LBS’ Sukuk Wakalah programme and the establishment of its inaugural Sustainability Financing Framework demonstrates the group’s humble aspiration towards a responsible, sustainable and socially inclusive future.

“This is also a key step towards LBS’ goal of net zero carbon emissions by 2050,” he says.

The programme has been assigned a preliminary credit rating of AA-IS with a stable outlook by MARC Ratings Bhd.

The proceeds raised from the Sukuk Wakalah programme will be used for shariah-compliant purposes, including capital expenditures, investments, general corporate purposes, working capital and refinancing.

The Sukuk Wakalah programme provides flexibility for the group to issue both Sukuk Wakalah and Sustainable and Responsible Investment (SRI) Sukuk Wakalah.

“This aligns with LBS' inaugural Sustainability Financing Framework, which has received a ‘gold’ impact bond assessment by MARC.

“The framework has been established to set the guiding principles for LBS’ sustainable financing instruments – targeting specific eligible projects that contribute to environmental and social benefits,” says LBS Bina in a statement.

HSBC Amanah Malaysia Bhd and RHB Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers of the Sukuk Wakalah Programme.

In addition, HSBC Amanah is the sole sustainability structuring agent and sole shariah adviser of the Sukuk Wakalah Programme.

About LBS Bina Group

LBS, an internationally-recognised developer with a vision for building and inspiring delightful spaces, is a renowned township developer that has amassed numerous awards through their various developments.

By placing people at the heart of their approach, LBS has been building and shaping the nation’s landscape for over 30 years while continuing to meet the market demands for quality and affordable homes.

The continued success of LBS is attributed to the leadership of its executive chairman Lim, who was named Property Man of the Year at the Malaysia Property Award (formerly the FIABCI Malaysia Awards of Distinction) in 2018, which is the gold standard for developers in the real estate industry.

Further recognition received was the “Oscar Award” in the property fraternity. The award was in recognition of Lim’s perseverance and resilience over time within the industry, excellent demonstration of strong leadership, deep industry knowledge and impeccable values of integrity and responsibility.

To date, LBS with vast land banks spread across Malaysia, will continue to grow in stature and strength, through replicating successful townships such as Bandar Saujana Putra to other parts of Selangor including KITA @ Cybersouth in Dengkil, LBS Alam Perdana in Bandar Puncak Alam and others.

Beyond property development, LBS is also venturing into retail management, hospitality and tourism.

For more information on LBS’ sustainability initiatives, go to lbs.com.my/sustainability.