KUALA LUMPUR: LBS Bina Group Bhd has raised RM200 million from its newly established RM750.0 million Sukuk Wakalah programme.
The orderbook for the RM200 milion issuance was about RM1.276 billion, representing an oversubscription rate of 6.38 times.
It has a tenure of five years from the issue date, maturing on Jan 23, 2029.
It was priced at a yield of 5.00 per cent with a periodic distribution rate of 5.00 per cent per annum., marking the first tranche under the recently introduced RM750 million Sukuk Wakalah Programme.
"The successful issuance of this tranche of ASEAN Social SRI Sukuk Wakalah certainly marks a positive milestone for LBS as we steer into the new year. In line with our Sustainability Financing Framework, the ASEAN Social SRI Sukuk Wakalah will provide LBS with adequate war chest to continue undertaking social projects focusing on sustainability as a roadmap to success," LBS group executive chairman Tan Sri Lim Hock San said in a statement.
The programme is rated AA-IS with a stable outlook by MARC Ratings Bhd.
LBS is the first real estate developer in Malaysia to issue an ASEAN Social SRI Sukuk Wakalah with its proceeds to be tagged to affordable housing.
"Given the growing demand for affordable housing in Klang Valley and other parts of the country, LBS' aspiration to expand the supply of affordable housing will facilitate and encourage home ownership, which will help bolster Malaysia's real estate market," Lim added.
HSBC Amanah Malaysia Bhd and RHB Investment Bank Bhd serve as joint principal advisers and lead arrangers for the programme.
HSBC Amanah is the sustainability structuring coordinator and Shariah adviser, while HSBC Amanah, Maybank Investment Bank Bhd, and RHB Investment act as joint lead managers for the issuance.