Sarawak Oil Palms Bhd’s (SOPB) wholly-owned unit and special purpose funding vehicle, SOP Capital Sdn Bhd, has proposed to issue unrated Islamic medium term notes (Sukuk Murabahah) of up to RM1 billion in nominal value.
In a filing with Bursa Malaysia yesterday, SOPB said the Sukuk Murabahah Programme’s tenure is up to 20 years from its first issue date.
According to the Miri-based plantation company, SOP Capital had received the acknowledgement receipt from the Securities Commission of Malaysia on Aug 21, 2020, pursuant to OCBC Al-Amin Bank Bhd’s lodgement (on behalf of SOP Capital) of the Sukuk Murabahah Programme.
OCBC Al-Amin Bank Bhd is the principal adviser, lead arranger, lead manager and Shariah adviser for the Sukuk Murabahah Programme, it said.
Proceeds from the issuance of the Sukuk Murabahah would be utilised to part-finance and/or part-reimburse the cost and expenses in relation to plantation development, cultivation, replanting, mechanisation, plant or building expansion, upgrading, equipment replacement and any other activities in relation to the group’s upstream and downstream businesses.
“It will also be used to part-finance and/or part-reimburse the acquisition costs or purchase consideration of oil palm/oil palm related investments of the group, for working capital requirements of the group, and for general corporate purposes, including repayment/payment of inter-company advances and shareholder advances of the group,” it said.
The company said the proceeds would also be utilised to refinance existing financing or borrowings of the group and to refinance any maturing Sukuk Murabahah issued under the programme.
SOPB said the Sukuk Murabahah may be issued with or without periodic profit payments.
“In the case of Sukuk Murabahah issued with periodic profit payments, the periodic profit rate will be determined prior to the issuance of the Sukuk Murabahah, based on either a fixed or floating rate,” it said, adding that the yield to maturity shall be determined prior to each issuance of the sukuk.
Source Borneo Post