Lagenda Properties Berhad has established a RM1.5 billion Islamic medium-term notes (Sukuk Wakalah) programme to strengthen its funding capacity and support the continued expansion of its affordable housing developments across Malaysia.
The property developer announced that its wholly-owned subsidiary, Lagenda Capital Berhad, lodged the programme with the Securities Commission Malaysia (SC) on July 24 under the regulator’s Lodge and Launch Framework (LOLA).
The Sukuk Wakalah programme, which carries a nominal value of up to RM1.5 billion, will allow the group to issue Islamic medium-term notes from time to time, providing greater financial flexibility to fund growth initiatives.
Lagenda Properties will act as guarantor for the programme through an irrevocable and unconditional corporate guarantee.
The programme has a perpetual tenure, while each sukuk issuance will have a minimum maturity of one year. The first issuance is expected to take place within 90 business days from the lodgement date, subject to regulatory requirements.
The sukuk will not be listed on Bursa Malaysia or any other stock exchange.
Lagenda said proceeds from the sukuk programme will primarily be channelled into its affordable housing business through Shariah-compliant intercompany financing within the group.
In addition, the proceeds will support working capital requirements, general corporate purposes and refinancing of both conventional borrowings and existing or future Shariah-compliant financing facilities.
Part of the proceeds may also be utilised to cover costs associated with establishing and managing the sukuk programme, including required reserve accounts, as well as redeeming previously issued sukuk under the same programme.
