KUALA LUMPUR (Sept 3): Power Root Bhd(KL:PWROOT) has filed for a sukuk wakalah programme with the Securities Commission of Malaysia (SC) to raise funds for working capital, capital expenditure, and to refinance existing borrowings or future financing.

In a bourse filing on Tuesday, the local instant and canned beverage manufacturer said it had submitted the necessary documents to the SC for the Islamic Medium Term Notes (IMTN) of up to RM500 million in nominal value, based on the shariah principle of Wakalah Bi Al-Istithmar.

The IMTN will have a tenure of 30 years from the date of the first issuance. Each IMTN issued will have a minimum term of one year but must mature before the end of the programme.

"The sukuk wakalah programme has been assigned a preliminary long-term credit rating of AA-IS by MARC Ratings Bhd," Power Root noted.

However, individual sukuk wakalah may be rated, unrated, or a mix of both, as agreed upon by the lead manager and the company prior to each issuance.

United Overseas Bank (Malaysia) Bhd is the principal adviser, lead arranger, and lead manager for the sukuk wakalah programme, while Tan Sri Mohd Daud Bakar serves as the shariah adviser.

As of the end of June, the group's total borrowings stood at RM49.5 million, and its cash and bank balance amounted to RM120.4 million.

Shares in Power Root closed one sen or 0.68% lower at RM1.46, giving the company a market capitalisation of RM674.78 million. Year-to-date, the stock has fallen by 14.7%.