OCK Group Berhad announced that it has issued the first tranche worth RM400 million under its RM700 million Sukuk Murabahah programme with an oversubscription rate of 1.33 times. The programme concerned was accredited with a credit rating of AA- by MARC Ratings Berhad.
Under this first tranche, a profit rate, for a RM100 million portion maturing in 5 years, has been priced at 5.21% while the other 7-year RM300 million portion has been priced at 5.38%.
The group will be using the proceeds raised towards restructuring the Group’s foreign currency-denominated borrowings thus allowing for significant interest savings and alleviating the strain on foreign exchange rate fluctuations. It will also provide OCK with additional capital to strategically undertake new projects, further strengthening its presence and foothold within the telecommunication segment.
United Overseas Bank (Malaysia) Berhad is the principal adviser, lead arranger and lead manager for this Sukuk Murabahah programme.
OCK group managing director Datuk Wira Sam Ooi Chin Khoon commented, “Given the completion of our first tranche, we would like to express our utmost appreciation to all parties involved in this sukuk programme. The overwhelming response, as exhibited by the oversubscription rate, signifies the confidence in OCK as well as its ability to deliver long term value backed by solid stream of recurring revenue coming from both telecommunication network services and solar renewable energy assets. At the same time, we will continue to actively explore new opportunities to further drive growth within our business segments to keep up with the overwhelming demand for 5G as well as renewable energy.”
