Bumitama secures RM500m 5-year sukuk issuance

KUALA LUMPUR, March 21 — Bumitama Agri Ltd and Maybank Investment Bank Bhd (Maybank IB) have priced and issued Bumitama’s first RM500 million five-year sukuk issuance under its maiden RM2 billion sukuk programme in nominal value.

Maybank IB said that it would act as Joint Principal Adviser, Joint Lead Arranger, Joint Lead Manager and Joint Bookrunner for the sukuk (Islamic Bond) Programme.

“This issuance represents Bumitama’s diversification into the fixed-income capital market for financing and also marks Bumitama’s foray into the Malaysian capital market.

“In doing so, Bumitama is contributing to the growing list of foreign issuers who have tapped the Malaysian bond and sukuk market,” the company said in a statement.

Bumitama Chief Financial Officer Sie Eddy Kurniawan said the sukuk programme provided the company the financial diversification and flexibility the access to fundings when such needs arose.

“As a relatively young palm oil company with growth prospects, the Bumitama Group is always on the look out for growth opportunities,” he said.

John Chong, Chief Executive Officer of Maybank Kim Eng Group and Maybank IB, said this issuance would continue to showcase the platform and expertise in structuring and executing sukuk transactions.

The sukuk programme has been assigned a AA3 rating by RAM Ratings Services Bhd.

Bumitama plans to use the proceeds for capital expenditure, working capital requirements, investments, refinancing existing debts and for the group’s general corporate purposes, all of which shall be Shariah-compliant. — Bernama