S P Setia raises RM434m via sukuk for Penang land buy

KUALA LUMPUR (Sept 26): S P Setia Bhd has raised RM434 million under a sukuk programme with a nominal value of up to the same sum, to part finance its purchase of five parcels of freehold land in Seberang Perai, Penang.

It said in a filing that the notes were issued by its wholly-owned subsidiary Setia Recreation Sdn Bhd.

Public Investment Bank Bhd is the principal adviser for the sukuk programme, which will have a tenure of up to 10 years from the date of the first issue.

The sukuk programme is guaranteed by S P Setia and is secured by, among others, by the five plots of land mentioned, which are adjoining freehold parcels measuring some 1,674.83 acres (677.78ha).

Last November, the group announced it won the tender to buy the plots for RM620.12 million, which marked the property developer’s maiden entry into the mainland of Penang.

“The land is planned for an eco-themed mixed-development township that has a potential gross development value of RM9.6 billion over a period of 15 to 20 years.”

This article first appeared in The Edge Financial Daily, on Sept 26, 2017.

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