edotco Group has successfully priced and issued its maiden RM1.4 billion Sukuk under its newly established Islamic Medium Term Notes Programme of up to RM3 billion. The Sukuk issuance represents edotco Group’s first venture into the RM debt capital markets for fundraising
Maybank Investment Bank Berhad and OCBC Al-Amin Bank Berhad are the Joint Principal Advisers, Joint Lead Arrangers and Joint Sustainability Structuring Advisors for the Sukuk Programme. Maybank IB and OCBC Al-Amin also acted as Joint Lead Managers for the Sukuk issuance together with RHB Investment Bank Berhad.
The Sukuk Programme has been assigned a final rating of AA+IS with a stable outlook by MARC Ratings Berhad on the back of edotco Malaysia’s status.
This comes after the group’s successful book-building exercise which garnered robust interest from Malaysian fixed-income investors. With an order book that grew in excess of RM9 billion at its peak, it allowed the company to upsize the transaction from the initial size of RM1.0 billion to RM1.4 billion representing a strong bid to cover ratio of 5.2 times. The strong interest from investors also enabled the Sukuk overall yields to be tightened by 22 bps across all tenures and was finally priced at 3.93% p.a. (3 years), 4.27% p.a. (5 years), 4.44% p.a. (7 years) and 4.54% p.a. (10 years).
