KLCCP issues RM1.95b sukuk to fund 40% stake buy in Suria KLCC

• The Sukuk Wakalah has a tenure ranging from three to five years, offering a periodic distribution rate between 3.73% and 3.85% per annum, according to KLCCP’s bourse filing. Currently, KLCCP holds a 60% stake in Suria KLCC.

KUALA LUMPUR (April 5): KLCC Property Holdings Bhd (KLCCP) said it has on Friday made the first issuance of Sukuk Wakalah amounting to RM1.95 billion in nominal value under the RM5 billion programme, to finance the acquisition of a 40% stake in Suria KLCC Sdn Bhd.

The Sukuk Wakalah has a tenure ranging from three to five years, offering a periodic distribution rate between 3.73% and 3.85% per annum, according to KLCCP’s bourse filing. Currently, KLCCP holds a 60% stake in Suria KLCC.

In January, KLCC Property Holdings Bhd (KLCCP) inked an agreement with Suria KLCC's existing shareholders — Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd and Bold Peak Sdn Bhd — to acquire the remaining 40% stake in Suria KLCC.

The acquisition is slated for completion by the second quarter of 2024.

Last month, KLCCP submitted relevant documents to the Securities Commission of Malaysia (SC) pertaining to its RM5 billion sukuk programme, which has received a final credit rating of ‘AAA’ from RAM Rating Services Sdn Bhd.

The proceeds from the issuance of Sukuk Wakalah will be directed towards financing various needs including working capital requirements, acquisitions, investments, capital expenditures and general corporate purposes of KLCCP and its subsidiaries.

Additionally, the funds will be utilised to refinance any existing borrowings or shariah-compliant financings, both current and future, within the KLCCP Group.

KLCCP’s share price, which has risen over 6% year to date, closed unchanged at RM7.50 on Friday, giving the group a market capitalisation of RM13.54 billion.

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