KUALA LUMPUR: Pelaburan Hartanah Bhd's (PHB) RM1.5 billion sukuk murabahah with sustainability issuance saw strong investor demand, with an oversubscription of 2.2 times.
PHB said in a statement, the proceeds from the sustainability issuances will be used to refinance eligible projects towards climate and wider environmental benefits, or measurable social improvement and impact.
PHB chief executive officer Mohamad Damshal Awang Damit said the programme will allow the company to expand its shariah-compliant investment portfolio through asset acquisitions, refinance existing borrowings, and support future financing needs.
He added that this is done while boosting Bumiputera ownership in prime commercial real estate through Amanah Hartanah Bumiputera (AHB).
"The strong demand for this issuance reflects investor confidence in PHB's financial strength and strategic role in realising the government mandate that has been assigned to us," he said.
PHB completed its inaugural issuances of sustainability sukuk murabahah and sukuk murabahah with tenures of one, three, five and seven years, conducted through private placement and book building exercises.
The sukuk have tight spreads with profit rates set between 3.49 per cent and 3.91 per cent per annum.
The sustainability sukuk murabahah was well-spread among various investor segments, including pension funds, insurance companies, asset managers and financial institutions.
The sukuk murabahah programme consists of Islamic medium-term notes (IMTN) and Islamic commercial papers (ICP) with a combined limit of up to RM5 billion.
The programmes are structured around shariah-compliant tawarruq-based murabahah principles, with the flexibility to issue sustainability sukuk murabahah tranches.
Affin Hwang Investment Bank is the issue's sole principal adviser, lead arranger and sustainability sukuk adviser.
It is also one of the joint lead managers for the transaction, alongside AmInvestment Bank, Bank Islam Malaysia and Bank Muamalat Malaysia.