WCT plans RM5b sukuk wakalah to fund working capital, debt refinancing

KUALA LUMPUR (Feb 6): WCT Holdings Bhd (KL:WCT) has proposed a sukuk wakalah programme of up to RM5 billion to fund working capital and refinancing of borrowings.

The construction group said in a bourse filing that it had lodged the necessary documents with the Securities Commission Malaysia.

The sukuk programme carries a perpetual tenure, with each issuance to have a maturity of more than one year, determined prior to issuance. WCT also has the option to issue sustainability sukuk or sustainability-linked sukuk under the programme.

MARC Ratings Bhd has assigned preliminary ratings of A+IS and A-IS, both with a positive outlook.

Proceeds will be channelled towards capital expenditure, investments, general corporate purposes, working capital, refinancing of shariah-compliant or conventional borrowings, and programme-related fees.

AmInvestment Bank Bhd and Maybank Investment Bank Bhd have been appointed as joint principal advisers, joint lead arrangers, joint lead managers, and joint shariah advisers.

As at end-September 2025, WCT reported cash and bank balances of RM560.56 million, against short-term debt of RM1.76 billion and long-term borrowings of RM650.85 million.

The group’s outstanding order book stood at RM2.32 billion, while its tender book exceeded RM11 billion, comprising mainly civil and infrastructure projects locally and abroad.

According to AskEdge data, WCT’s net gearing ratio stood at 61.7%, broadly in line with Gamuda Bhd’s (KL:GAMUDA) 62.3%, but higher than IJM Corp Bhd’s (KL:IJM) 36.5%. In contrast, other large-cap peers such as Sunway Construction Group Bhd (KL:SUNCON), Kerjaya Prospek Group Bhd (KL:KERJAYA), and Binastra Corp Bhd (KL:BINASTRA) are in net cash positions.

At Friday’s midday break, WCT shares were one sen or 1.7% lower at 57 sen, giving the group a market capitalisation of RM889 million. The stock has fallen 34.5% over the past year.

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