KUALA LUMPUR (July 18): IJM Corp Bhd has proposed an inaugural RM360 million nominal value sukuk murabahah to be issued under an Islamic medium term notes programme based on the shariah-principle of murabahah (via tawarruq arrangement) (sukuk murabahah programme).
This was following a subscription agreement signed between IJM Corp's wholly-owned subsidiary Fairview Valley Sdn Bhd with CIMB Investment Bank Bhd and CIMB Islamic Bank Bhd, said the joint statement by IJM Corp and CIMB.
"Proceeds from the inaugural sukuk murabahah issuance will be utilised to refinance the existing facilities of Fairview Valley that was used to fund the construction of Menara Prudential, a 27-storey Grade-A, LEED Gold-certified, MSC status office tower," it said.
It said CIMB acted as the sole lead arranger, sole lead manager, and sole shariah adviser for the sukuk murabahah programme, which will also be fully subscribed by CIMB.
Both parties said that in addition to being Fairview Valley's inaugural sukuk murabahah issuance, the transaction incorporates sustainability-linked features with pre-agreed targets.
"The transaction's terms include features such as energy and water efficiency performance indicators and renewable energy composition of the assets.
"Profit rebates will be granted should Fairview Valley achieve these targets, thus lowering the overall cost of financing whilst also advancing sustainability practices," it added.
IJM Corp deputy chief executive officer and deputy managing director Lee Chun Fai said the integration of the group's sustainability performance with financing metrics is also in line with its efforts to pursue green credentials under IJM Corp's sustainability road map for financial years 2023 to 2025.
Source: TheEdge - 19 Jul 2022
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