KUALA LUMPUR: Sunway Bhd is raising RM10 billion from a sukuk issuance for its investment activities, capital expenditure and working capital.
The fund raised will also be used to pay future operating expenses and financing expenses as well as existing or future borrowings.
In a filing to Bursa Malaysia today, Sunway said its indirect subsidiary Sunway Treasure Sukuk Sdn Bhd had established seven-year Islamic Commercial Papers/Islamic Medium Term Notes Programme under the syariah principle of Mudharabah.
Sunway said the first issuance of Sukuk Mudharabah was expected by the first quarter of this year.
“The Sukuk Mudharabah to be issued under the sukuk programme are unsecured and shall be transferable and tradable in the secondary market,” it said.
The sukuk has been assigned with an indicative rating of MARC-1IS(cg) / AA- IS(cg) by Malaysian Rating Corp Bhd.
It would be redeemed by the issuer at 100 per cent of their nominal value on their respective maturity date, Sunway said.
Kenanga Investment Bank Bhd is the sole principal adviser, lead arranger, lead manager and Shariah adviser for the sukuk.