KUALA LUMPUR: OCK Group Bhd has proposed to undertake the issuance of up to RM500 million of Islamic commercial papers programme based on the Shariah principle of Wakalah Bi Al-Istithmar.
The sukuk will have a tenure of seven years from the date of the first issuance.
The drawdown is expected to be in tranches and each tranche will have a tenure of up to 12 months.
Proceeds from the sukuk will be used to restructure existing short term financing and to finance general working capital.
OCK group managing director Datuk Sam Ooi Chin Khoon said the sukuk marked a milestone as the company steer into 2024.
"Considering the current state of our network infrastructure paired with the ongoing rollout of 5G network, we expect an upsurge in telecommunications activities.
"This sukuk programme will enable us to capitalise on new opportunities ahead as well as accelerate the deployment of network infrastructure to fortify our position in the telecommunication space.
"As we expand our operations, we remain committed to sustainability and corporate responsibility and we want to ensure that our growth is aligned with the best interests of our stakeholders and the environment," he said.
Hong Leong Investment Bank Bhd is the principal adviser, lead arranger, lead manager, lodgement party and the facility agent for the sukuk.