Dayang Enterprise fully redeems last RM220.5m portion of sukuk murabahah ahead of 2024, 2025 due dates

KUALA LUMPUR (Nov 16): Dayang Enterprise Holdings Bhd has fully redeemed the last two series of issues of its sukuk murabahah programme amounting to RM220.5 million on Nov 15, ahead of the due redemption dates in 2024 and 2025.

The company had used internal funds and fresh borrowings for this redemption, Dayang said in a bourse filing on Thursday.

Dayang noted that the original amount for the two series was RM313.95 million, but part of this amount was redeemed earlier with funds from a prior private placement exercise and internally generated funds.

The sukuk was initially issued in 2019 with a nominal value of RM682.5 million, divided into six series of two tranches each, with a tenure of eight years.

Dayang, at the time, said the proceeds from the issuance were to be utilised to part-finance the settlement sum, including the principal and profit/interest amounts due for certain specified financing facilities of Dayang Enterprise and its group of companies.

The sukuk programme is part of a group-wide debt-restructuring exercise undertaken by Dayang, aimed at restructuring and rescheduling their loans and debt obligations to strengthen the financial position of the group.

In 2019, Perdana Petroleum Bhd, which is 63%-owned by Dayang, extended RM682.5 million in financial assistance to Dayang in order to help the group establish new means to repay its debt, including the establishment of the aforementioned sukuk programme.

According to Dayang's unaudited quarterly report for the financial period ended June 30, 2023 (2QFY2023), the group's loans and borrowings amounted to RM137.7 million, while its trade and other payables stood at RM174 million.

Maybank Investment Bank Bhd and United Overseas Bank (M) Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for the sukuk murabahah programme.

Dayang closed one sen or 0.54% lower at RM1.83, for a market capitalisation of RM2.12 billion.