S P Setia’s RM800m sukuk issuance oversubscribed by 2.3 times

KUALA LUMPUR (June 16): Property developer S P Setia Bhd has successfully priced a RM800 million sukuk issuance, proceeds of which will be used for the group’s project development, refinance its borrowings and general corporate purposes.

The issuance comprises a RM500 million five-year tranche and a RM300 million seven-year tranche, out of its newly established Islamic Medium Term Notes Programme of up to RM3 billion in nominal value.

The issuance was oversubscribed by 2.3 times, with an orderbook in excess of RM1.85 billion coming from diversified and high-quality investors, it said in a statement yesterday.

“The oversubscription clearly reflects strong market confidence in S P Setia’s fundamentals and credit story, despite the challenging market conditions in light of the ongoing Covid-19 pandemic. In addition, S P Setia was also able to price the transaction at the tight end of the price guidance,” the group added.

The sukuk is rated AAIS by Malaysian Rating Corporation Bhd (MARC), it said.

S P Setia’s shares closed unchanged at RM1.10 yesterday, giving the group a market capitalisation of RM4.46 billion. It saw some 5.75 million shares transacted.

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