Sunway unit lodges RM2 bil perpetual sukuk programme with SC

KUALA LUMPUR (Nov 3): Sunway Bhd's wholly owned indirect subsidiary Sunway South Quay Sdn Bhd (SSQ) has lodged with the Securities Commission Malaysia a sukuk wakalah programme, the group said in a Bursa Malaysia filing on Thursday (Nov 3).

According to Sunway, it is a perpetual programme that allows sukuk wakalah to be issued from time to time, provided that the aggregate outstanding nominal value of the sukuks do not exceed RM2 billion at any point in time.

The programme is unrated.

"The Sukuk Wakalah programme also provides flexibility for SSQ to issue sukuk wakalah in compliance with, amongst others, green/social/sustainability/sustainability-linked/sustainable and responsible investment sukuk guidelines, frameworks, standards or principles issued by the SC, the ASEAN Capital Markets Forum and the International Capital Market Association," it said.

According to Sunway, SSQ's sustainable finance framework, which allows the company to issue sustainability sukuk wakalah under the programme, has been assigned a “Gold” Impact Assessment by MARC Ratings Bhd.

The proceeds from the sukuk wakalah will be used by SSQ and its subsidiaries (SSQ group) for shariah-compliant purposes that include working capital for the SSQ group, refinancing their existing borrowings, general corporate purposes, and provide inter-company advances within the Sunway group.

Meanwhile, the sustainability sukuk wakalah proceeds will be used by SSQ to finance and/or refinance eligible sustainability responsibility investing projects, such as green buildings, renewable energy, and socioeconomic advancement and empowerment endeavours.

HSBC Amanah Malaysia Bhd is the principal adviser, lead arranger, lead manager, bookrunner, shariah adviser and sustainability structuring agent for the sukuk wakalah programme.

Sunway closed down 10 sen or 0.63% at RM1.58, giving it a market capitalisation of RM7.8 billion.