KUALA LUMPUR, Jan 29 — Sunway Bhd has established a sukuk programme of RM10 billion in nominal value.

Sunway said the Islamic commercial papers/Islamic medium-term notes programme would be set up under the shariah principle of mudharabah with a tenure of seven years, and the first issuance would be in the first quarter of 2019.

It said the proceeds from the programme would be used to finance its investment activities, capital expenditure and working capital.

“The programme was established via Sunway Treasury Sukuk Sdn Bhd, a wholly-owned subsidiary of Sunway Treasury Sdn Bhd, which in turn is a wholly-owned subsidiary of Sunway.

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“Kenanga Investment Bank Bhd is the sole principal adviser, lead arranger, lead manager and shariah adviser for the sukuk programme,” it said in a filing with Bursa Malaysia today.

Sunway said the sukuk would be guaranteed by the group by way of a Kafalah guarantee in favour of the sukuk trustee.

“The sukuk to be issued are unsecured, and shall be transferable and tradable in the secondary market.

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“Malaysian Rating Corporation Bhd has assigned the sukuk programme with an indicative rating of MARC-1IS(cg) / AA- IS(cg),” it added. — Bernama