KUALA LUMPUR: GFM Services Bhd issued its maiden sukuk of RM165 million through its wholly owned subsidiary, Dynasty Harmony Sdn Bhd (DHSB).
The sukuk, with tenures of between 10.0 to 14.5 years, has been assigned a rating of AA3/stable by RAM Rating Services Bhd.
Proceeds raised will be utilised to finance GFM’s investment activities, capital expenditure, working capital and general corporate purposes, including repayment of financing facilities.
The sukuk is the first issuance under the Islamic medium term notes programme of RM300 million in nominal value, GFM said in a statement today.
GFM managing director Ruslan Nordin said the sukuk issuance marked a milestone in the group’s funding activities.
“We are pleased to have successfully issued the first tranche under the sukuk programme as it provides us the flexibility to undertake investment activities, while supporting the group’s operations and growing orderbook,” he said.
To recap, GFM had recently completed its acquisition of KP Mukah Development Sdn Bhd (KPMD), a university asset concessionaire, for RM122.5 million.
The company said the addition of KPMD will boost GFM’s estimated outstanding orderbook to RM1.4 billion, as at November 30, 2018.
GFM said the sukuk programme has a tenure of up to 18 years from the date of the first issuance, and is based on the Shariah principle of Wakalah Bi Al-Istithmar and Murabahah via Tawarruq arrangement.
GFM, had on November 19, 2018, filed all required information and relevant documents with the Securities Commission relating to the sukuk programme pursuant to the prevailing Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.
Kenanga Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the sukuk programme.