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KUALA LUMPUR (June 23): Bina Darulaman Bhd (BDB) has issued its maiden sukuk, RM50 million Sukuk Wakalah, the first tranche of the Kedah-based property and construction company's seven-year, RM100 million Sukuk Wakalah Programme.
In a statement today, BDB said the sukuk is based on the underlying Shariah principle of Wakalah Bi Al-Istithmar (investment agency).
The company said it plans to use the proceeds for its general corporate purposes including infrastructure development, potential landbank acquisitions, and working capital requirements of existing and future projects.
It said the sukuk programme is also part of BDB's financial planning to optimise BDB's property arm, which is currently worth approximately RM1 billion in gross development value.
BDB group managing director Datuk Izham Yusoff said the issuance of this sukuk marked a milestone in the group's financing activities.
He said the board of directors had in August 2016 given the green light for BDB to explore a debt funding programme either from bank or debt capital markets.
"Given the long-term nature of our projects, the flexibility, efficiency and pricing of financing structures are critical. Our priority is to add value to BDB's financial position and financial performance," he added.
BDB had on June 1 lodged with 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.
The Sukuk Wakalah Programme has been assigned a short-term rating of MARC-2IS by Malaysian Rating Corporation Bhd.
Maybank Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the Sukuk Wakalah Programme; and Maybank Islamic Bhd is the Shariah adviser for the programme.
At 12.08pm, BDB dipped 0.75% or 0.5 sen to 66.5 sen with 22,600 shares traded.— theedgemarkets.com
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