KLCC Real Estate Investment Trust (KLCC REIT) has successfully upsized its Islamic financing capacity, expanding its Sukuk Murabahah Programme from RM3.0 billion to RM4.0 billion in nominal value.
The strategic move, executed through its wholly-owned special purpose vehicle Midciti Sukuk Berhad, aims to provide the commercial property giant with greater financial flexibility to manage its debt profile and fund future investment activities. The revision of terms and the increased limit for the perpetual program officially took effect on April 16, 2026.
Following the expansion, Midciti successfully issued a fresh RM500 million tranche of Islamic Medium Term Notes on April 24, 2026. The 10-year sukuk carries a competitive profit rate of 3.86 percent per annum and is set to mature on April 24, 2036.
The proceeds from this latest issuance were immediately utilised to refinance an existing RM500 million sukuk that matured on the same day. This seamless refinancing exercise ensures the REIT maintains its robust balance sheet and healthy liquidity levels, which are critical for its portfolio of high-value assets, including the PETRONAS Twin Towers and Menara ExxonMobil.
The program continues to hold a long-term credit rating of AAA with a stable outlook from RAM Rating Services Berhad. This top-tier rating reflects the superior quality of KLCC REIT’s assets, its conservative leverage, and its strategic relationship with its ultimate parent, Petroliam Nasional Berhad (PETRONAS).
By securing an additional RM1 billion in headroom under the upsized program, KLCC REIT is well-positioned to navigate the evolving capital market while supporting its Shariah-compliant capital expenditure and potential acquisitions in the long term.
The issuance was supported by a consortium of leading financial institutions, with AmInvestment Bank, CIMB Investment Bank, and Maybank Investment Bank serving as Joint Lead Managers, while Shariah advisory was provided by CIMB Islamic Bank and Maybank Islamic.
