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DRB-Hicom to undertake sukuk programme worth RM1.8 billion

Posted on November 3, 2011, Thursday

KUALA LUMPUR: DRB-Hicom Bhd (DRB-Hicom) will undertake an Islamic medium-term notes (sukuk) programme of up to RM1.8 billion.

In a filing to Bursa Malaysia yesterday, the company said it had mandated Maybank Investment Bank Bhd as principal adviser, lead arranger and lead manager for the programme. DRB-Hicom said Malaysian Rating Corp Bhd had assigned a preliminary rating of ‘AA-IS’ to the programme with a stable outlook.

“The tenure of the programme, which will be issued under the syariah principle of Murabahah via Tawarruq arrangement, is up to 15 years from the date of first issuance,” it said.

The company said the proceeds from the programme would be used to finance working capital requirements; current and future projects; investments; capital expenditure; and, refinance borrowings. It said the Securities Commission Malaysia had on October 31 approved the establishment of the programme. — Bernama

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