Lagenda secures RM475 mil inaugural sukuk to fund affordable township expansion

PETALING JAYA (July 29): Lagenda Properties Bhd has secured RM475 million through the inaugural issuance under its RM1.5 billion sukuk wakalah programme, marking the affordable township developer's first entry into Malaysia's Islamic debt capital market.

The maiden issuance was subscribed by AmBank Group, which committed RM400 million, and Alliance Islamic Bank Bhd, which subscribed the remaining RM75 million, said the developer in a press statement on Tuesday (July 28).

Established through wholly-owned subsidiary Lagenda Capital Bhd and guaranteed by Lagenda Properties, the sukuk wakalah programme broadens the group's funding sources while strengthening its capital structure and financial flexibility as it expands its affordable township developments nationwide.

The issuance follows the establishment of the RM1.5 billion sukuk wakalah programme, providing Lagenda with access to Malaysia's domestic Islamic capital market through a funding platform that can support future drawdowns as its development pipeline grows.

AmInvestment Bank Bhd and Alliance Islamic Bank Bhd acted as joint principal advisers, joint lead arrangers and joint lead managers for the programme. AmInvestment Bank also serves as facility agent, while Alliance Islamic Bank and AmBank Islamic Bhd are joint Shariah advisers.

Proceeds raised under the programme will be used for Shariah-compliant purposes, including financing and refinancing investments, land acquisitions, capital expenditure, affordable housing development, working capital requirements, general corporate purposes and the refinancing of existing borrowings.

Managing director Datuk Jimmy Doh described the issuance as a significant milestone in the group's growth journey.

"It enhances our financial flexibility by broadening our access to Malaysia's Islamic capital market, enabling us to support our long-term growth through a more diversified and efficient funding platform while maintaining disciplined capital management,” he said.

Founded as an affordable township developer in 2018, the group has since expanded beyond its original Perak base into Selangor, Johor, Kedah and Pahang. It now has a 3,988-acre landbank across six states, with developments centred on affordable homes and community-based townships serving the B40 and M40 income segments.

The company has also received a four-star ESG rating under the FTSE4Good Bursa Malaysia Index, reflecting its efforts to strengthen environmental, social and governance practices.

Following the inaugural RM475 million issuance, Lagenda retains capacity of approximately RM1.025 billion under the programme for future issuances as funding requirements arise across its affordable township development pipeline.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!