KLCC Prop issues RM600m sukuk

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KUALA LUMPUR (Dec 31): Suria KLCC Sdn Bhd, a 60%-owned subsidiary of KLCC Property Holdings Bhd (KLCC Prop), has today issued RM600 million Islamic medium term notes with a 10-year tenure.

In a filing with Bursa Malaysia, KLCC Prop said the Securities Commission Malaysia has, vide its letter dated November 19, authorised the establishment of the Sukuk Murabahah Programmes to be undertaken by Suria KLCC. 

The Sukuk Murabahah Programmes entails the establishment of an Islamic medium term note programme and an Islamic commercial paper (ICP) programme, with a combined limit of up to RM600 million, based on the shariah principle of Murabahah.

The notes, which will be issued on a bookrunning basis, have a period distribution rate of 4.73% per annum on a semi-annual basis.

"Proceeds raised from issuances under the Sukuk Murabahah Programmes shall be utilised by Suria KLCC for shariah-compliant purposes, including refinancing or repayment of the issuer's borrowings and/or shareholders' advances, financing of immovable properties, working capital and for general corporate purposes," KLCC Prop said.

It added that the Sukuk Murabahah Programmes have been accorded final long-term and short-term ratings of AAA and P1 respectively by RAM Rating Services Bhd.

CIMB Investment Bank Bhd is the principal adviser, lead arranger, lead manager and bookrunner for the Sukuk Murabahah Programmes, while CIMB Islamic Bank Bhd is the shariah adviser.