KUALA LUMPUR (Oct 17): MyEG Services Bhd has made a lodgement with the Securities Commission Malaysia for the establishment of a sukuk wakalah programme of up to RM1 billion.

“The sukuk wakalah programme is a perpetual programme which allows for the issuance of Sukuk Wakalah from time to time, provided that the aggregate outstanding nominal value of Sukuk Wakalah shall not exceed RM1 billion at any point in time,” said MyEG in a bourse filing on Monday (Oct 17).

The sukuk wakalah programme has been assigned a preliminary rating of AA-IS with a stable outlook by MARC Ratings Bhd.

Proceeds from the issuance of the sukuk wakalah programme will be used for shariah-compliant working capital requirements, capital expenditures, investments and financing of business expansions of the group.

It will also be used to refinance existing conventional loans or existing or future Islamic financing facilities (including sukuk) of MYEG and its subsidiaries; to provide shariah-compliant financing among subsidiaries within the group; for liquidity management required for the group's existing or future shariah-compliant businesses, and to cover fees, costs and expenses related to the establishment or issuance of the sukuk wakalah programme.

CIMB Investment Bank Bhd and HSBC Amanah Malaysia Bhd are appointed as the joint principal advisers, joint lead arrangers, joint lead managers, joint bookrunners and joint sustainability structuring agents for the sukuk wakalah programme.

Maybank Investment Bank Bhd and AmInvestment Bank Bhd are also appointed as the joint lead managers and joint bookrunners for the programme.

On Monday, MyEG shares finished down two sen or 2.37% to 82.5 sen, with some 24 million shares exchanging hands. Based on its closing price, MyEG has a market capitalisation of RM6.13 billion.

Year-to-date, the stock has fallen 23.61% from RM1.08 apiece.