OCK Group Bhd has issued sukuk murabahah pursuant to its Islamic medium-term notes programme of up to RM700 million in nominal value over a tenure of 30 years.
The telecommunications network solutions provider said in a statement that the proceeds raised from the issuance will be used to finance general working capital and capital expenditure, and to restructure existing borrowings along with other general corporate purposes.
OCK group managing director Datuk Sam Ooi Chin Khoon believes that the issuance strategically aligns with its long-term goals, as it will enable it to further pare down existing borrowings through the restructuring of loans, especially US dollar borrowings.
“It will provide us with additional working capital to take on more capital expenditure-heavy projects that are in our pipeline, and also kick-start new projects, where we can extend our growth by capitalising on the potential opportunities ahead amid the ongoing 5G roll-out,” he said.
Under the first tranche of the exercise to be issued, the sukuk murabahah has already been accredited by MARC Ratings, with a preliminary credit rating of AA- for up to RM400 million.
United Overseas Bank (Malaysia) Bhd is the principal adviser, lead arranger and lead manager for the sukuk murabahah programme.
