Lagenda lodges RM1.5 bil sukuk wakalah programme with SC to fund housing developments

KUALA LUMPUR (July 24): Lagenda Properties Bhd's (Lagenda) wholly owned subsidiary, Lagenda Capital Bhd has today made a lodgement with the Securities Commission Malaysia (SC) for the establishment of an Islamic medium term notes (sukuk wakalah) programme of RM1.5 billion on the shariah principle of wakalah bi al-istithmar (sukuk wakalah programme).

The property developer said in a filing with Bursa Malaysia that the sukuk wakalah programme would provide the group with greater funding flexibility for affordable housing developments, working capital and refinancing activities.

The sukuk wakalah programme, with a nominal value of up to RM1.5 billion, would have a perpetual tenure, while each sukuk issuance would have a minimum tenure of one year from its issue date.

The first issuance is expected to be made within 90 business days from the lodgement date or within such period as approved by the SC.

Lagenda said proceeds from the programme would primarily be utilised as shariah-compliant intercompany advances within the group to finance or reimburse investments, acquisitions and capital expenditure, including land acquisitions and development rights for affordable housing projects.

The funds would also be used to support working capital requirements, general corporate purposes, refinance existing conventional and Islamic financing facilities, pay expenses related to the sukuk programme, and redeem sukuk issued under the same series where applicable.

It also said the profit rate applicable to each series of the sukuk wakalah may be either fixed or floating, to be determined prior to the issuance of the sukuk wakalah.

Lagenda said the sukuk wakalah programme does not require regulatory or shareholders' approval, adding that Alliance Islamic Bank Bhd and AmInvestment Bank Bhd have been appointed as the joint principal advisers, joint lead arrangers and joint lead managers for the programme.

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