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Property News

EcoWorld issues RM550m sukuk for working capital, capex

KUALA LUMPUR (Aug 10): Eco World Development Group Bhd (EcoWorld) has issued the second tranche of Islamic bonds (sukuk) amounting to RM550 million under its sukuk wakalah programme of RM1.2 billion. 
In a filing with Bursa Malaysia on Thursday (Aug 10), the property developer said the proceeds from the sukuk will be utilised by EcoWorld Malaysia and its subsidiaries or any joint ventures related to them.
The sukuk, which has a tenure of five years, will also be used for the group’s working capital requirements, capital expenditure (capex), which include land acquisition and shariah-compliant investments, refinancing of any existing financing and borrowings or future shariah-compliant financing obligations, and general corporate purposes.
In October last year, EcoWorld said the RM1.2 billion sukuk programme, through its wholly-owned subsidiary Eco World Capital Bhd, is guaranteed by EcoWorld, and had been assigned a final credit rating of AA-IS(cg) with a stable outlook by local rating agency MARC Ratings.
CIMB Investment Bank Bhd, HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd are the joint principal advisers and lead arrangers for the sukuk programme. Meanwhile, the three banks as well as RHB Investment Bank Bhd are the joint lead managers for the maiden sukuk issuance.
Shares in EcoWorld closed half a sen or 0.53% lower at 93 sen on Thursday, giving the group a market capitalisation of RM2.74 billion. The stock has risen 47.62% so far this year.
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Source: EdgeProp.my

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