BUSINESS

DRB-HICOM PLANS UP TO RM3.5 BLN SUKUK WAKALAH PROGRAMME

04/11/2019 06:11 PM

KUALA LUMPUR, Nov 4  -- DRB-Hicom Bhd has proposed an Islamic medium terms notes (Sukuk Wakalah) programme of up to RM3.5 billion in nominal value under the Shariah principle of Wakalah Bi Al-Istithmar with the tenure of up to 30 years.

In a filing to Bursa Malaysia today, the group said the programme had been assigned a preliminary rating of A+IS with a positive outlook by Malaysian Rating Corporation Bhd.

“The outlook revision to positive considered the group’s improved consolidated credit profile through streamlining businesses by divesting investments and non-core assets and in improving operating margins and strengthening liquidity position,” it said.

DRB-Hicom noted that proceeds raised from the Sukuk Wakalah programme would be utilised to refinance the group’s existing financing or borrowings, the company’s capital expenditure and working capital requirements and/or investments, as well as general corporate purposes, and to pay all fees and expenses in connection with the programme.

The group was embarking on this financing exercise to take advantage of the current conducive interest rate environment to raise medium- to long-term financing, it said.

Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for the Sukuk Wakalah programme.

-- BERNAMA


 


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