KUALA LUMPUR (April 21): UEM Sunrise Bhd has proposed a RM2 billion Islamic commercial papers (ICP) programme and Islamic medium-term notes (ICP/IMTN-2) programme, with a sub limit of RM500 million for the ICP.
The property developer said the sukuk programmes will give it the flexibility to raise funds via the issuance of ICPs and/or IMTNs from time to time.
“The proceeds from the issuance shall be utilised for syariah-compliant general corporate purposes of the company,” it said in a statement yesterday.
Meanwhile, Malaysian Rating Corp Bhd (MARC) has assigned preliminary ratings of MARC-1IS for the ICP programme and AA-IS for the IMTN-2.
Concurrently, the rating agency has affirmed its MARC-1IS and AA-IS ratings on UEM Sunrise’s existing RM2 billion ICP and ICP/IMTN-1 programmes. The outlook on the ratings is stable.
MARC said UEM Sunrise’s long-term ratings benefit from a one-notch rating uplift for parental support from UEM Group Bhd, which is wholly owned by Khazanah Nasional Bhd.
It added that the weakening prospects for the company’s domestic property projects, particularly in Johor, and its moderate credit metrics, are offset to some degree by its geographically diversified property projects and its financial flexibility stemming largely from its significant unencumbered land bank.
This article first appeared in The Edge Financial Daily, on April 21, 2016. Subscribe to The Edge Financial Daily here.