KUALA LUMPUR: Bina Darulaman Bhd (BDB) has announced the issuance of its maiden sukuk of RM50 million – the first tranche of its seven-year, RM100 million Sukuk Wakalah programme.
The Kedah-based property and construction company said the sukuk is based on the underlying Shariah principle of Wakalah Bi Al-Istithmar (investment agency).
BDB said proceeds from the sukuk will be utilised for its general corporate purposes including infrastructure development, potential land bank acquisitions and working capital requirements of existing and future projects.
It noted that the sukuk programme is also part of its financial planning to optimise its property arm, which is currently worth about RM1 billion in gross development value (GDV).
Group managing director Datuk Izham Yusoff said the issuance of the sukuk marks a milestone in the group’s financing activities.
“The board of directors has given the green light for the company to explore a debt funding programme either from bank or debt capital markets,” he said.
He added that the long-term nature of the projects, the flexibility, efficiency and pricing of financing structures are critical.
“Our priority is to add value to the company’s financial position and financial performance,” Izham said.
On June 1, 2017, BDB lodged with the Securities Commission Malaysia (SC) all required information and relevant documents relating to the Sukuk Wakalah Programme pursuant to the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.
It said the Sukuk Wakalah Programme has been assigned a short-term rating of MARC-2IS, by the Malaysian Rating Corporation Bhd.
Maybank Investment Bank Bhd is also the Principal Adviser, Lead Arranger and Lead Manager for the Sukuk Wakalah Programme, while Maybank Islamic Berhad is the Shariah Adviser.