KLCCP Initiates RM1.95b Sukuk Wakalah for Suria KLCC Acquisition

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KLCCP’s debut Sukuk Wakalah issuance finances Suria KLCC stake acquisition, with terms and stock performance detailed.

KUALA LUMPUR, 9th Apr 2024 – KLCC Property Holdings Bhd (KLCCP) announced on Friday the inaugural issuance of Sukuk Wakalah totaling RM1.95 billion, as part of the RM5 billion programme. The funds will be used to acquire a 40% stake in Suria KLCC Sdn Bhd. The Sukuk Wakalah, with a tenure of three to five years, offers a periodic distribution rate ranging from 3.73% to 3.85% per annum, as stated in KLCCP’s stock exchange filing. Presently, KLCCP holds a 60% stake in Suria KLCC.

In January, KLCC Property Holdings Bhd (KLCCP) entered into a deal with the current shareholders of Suria KLCC — Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd, and Bold Peak Sdn Bhd — to purchase the remaining 40% stake in Suria KLCC.

The purchase is expected to be finalized by the second quarter of 2024.

In the previous month, KLCCP furnished necessary paperwork to the Securities Commission of Malaysia (SC) regarding its RM5 billion sukuk initiative, which has been awarded a definitive credit rating of ‘AAA’ by RAM Rating Services Sdn Bhd.

The funds generated from the Sukuk Wakalah issuance will be allocated to support various financial necessities such as working capital, acquisitions, investments, capital expenditures, and general corporate objectives of KLCCP and its affiliated companies.

Moreover, the funds will also be used to repay any existing debts or shariah-compliant financing obligations, both present and forthcoming, across the KLCCP Group.

KLCCP’s stock price, having increased by more than 6% year to date, remained steady at RM7.50 on Friday, resulting in a market capitalization of RM13.54 billion for the group.

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