LBS Bina Group Berhad announced the lodged the Sukuk Wakalah Programme with the Securities Commission Malaysia, which entails the issuance of Sukuk Wakalah of up to RM750 million in nominal value.
The group said the Sukuk Wakalah Programme has been structured with a perpetual tenure, each Sukuk Wakalah to be issued will have a tenure of more than one year.
The Programme has been assigned a preliminary credit rating of AA-IS with a Stable outlook by MARC Ratings Berhad.
LBS aims to use the proceeds raised to finance Shariah-compliant capital expenditure, investment, general corporate purposes, and working capital requirements of LBGB and/or its subsidiaries including for refinancing any existing financing/borrowings and/or future Shariah-compliant financing of LBGB and/or its subsidiaries (including redemption of outstanding sukuk).
It will also be used for pre-funding the minimum required balance in the applicable finance service reserve account; and defray any fees, costs and expenses in relation to the establishment of the Sukuk Wakalah Programme and issuance of Sukuk Wakalah under the Sukuk Wakalah Programme.
The Sukuk Wakalah Programme also provides flexibility for LBGB to issue Sustainability Sukuk Wakalah which is in compliance with amongst others, Green/Social/Sustainability/Sustainable and Responsible Investment Sukuk guidelines, frameworks, standards or principles issued by the SC, the ASEAN Capital Markets Forum or the International Capital Market Association.
LBGB is also pleased to announce that it has established a Sustainability Financing Framework, which has been assigned a “Gold” Impact Bond Assessment by MARC.
Proceeds raised from the issuance of Sustainability Sukuk Wakalah will be for green projects.
HSBC Amanah Malaysia Berhad and RHB Investment Bank Berhad are the Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers of the Sukuk Wakalah Programme. In addition, HSBC Amanah Malaysia Berhad is the Sole Sustainability Structuring Agent and sole Shariah Adviser of the Sukuk Wakalah Programme.
