Axis REIT to establish RM3 bil sukuk programme

• The programme, which will comprise the issuance of senior Islamic medium-term notes and subordinated perpetual Islamic notes, was lodged with the Securities Commission Malaysia (SC) by the REIT's manager, Axis REIT Managers Bhd.

KUALA LUMPUR (May 20): Axis Real Estate Investment Trust (KL:AXREIT) has proposed the establishment of a sukuk programme of up to RM3 billion in nominal value.

The programme, which will comprise the issuance of senior Islamic medium-term notes and subordinated perpetual Islamic notes, was lodged with the Securities Commission Malaysia (SC) by the REIT's manager, Axis REIT Managers Bhd, according to a bourse filing on Tuesday.

“The proceeds to be raised from the sukuk programme shall be utilised by the RHB Trustee Bhd [Axis REIT’s trustee] to, among others, finance capital expenditures [including development expenditures], working capital requirements, general corporate purposes and/or refinancing of existing borrowings/Islamic financings and/or future Islamic financing of Axis REIT,” Axis REIT said.

“The sukuk programme will also give the company the flexibility to issue sustainability sukuk and/or sustainability-linked sukuk,” it added.

RAM Rating Services Bhd has assigned the programme’s senior sukuk a long-term rating of AA2(s) with a stable outlook. The perpetual sukuk was assigned a long-term rating of A1(s) with a stable outlook.

Units in Axis REIT ended two sen or 1.06% higher at RM1.90, valuing the property trust at RM3.84 billion.

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