PETALING JAYA: Property investment company Pelaburan Hartanah Bhd (PHB) announced it has successfully issued a debut of RM1.5bil of sukuk murabahah under its RM5bil sukuk murabahah programmes.
According to the group, the sold sukuk comprises RM1.4bil of sustainability sukuk murabahah as well as RM100mil sukuk murabahah with tenures of one to seven years, conducted through private placement and book building exercises.
In a statement, PHB group managing director and chief executive officer Mohamad Damshal Awang Damit said the strong demand for the issuance reflects investors confidence in PHBs financial strength and strategic role in realising the government mandate assigned upon them.
“The issuance of RM5bil sukuk murabahah progammes is key in attaining PHB’s long-term goal of sustainable growth and reinforces our commitment to delivering value while adhering to shariah principles.
“The programme also provides essential capital to expand PHB’s shariah-compliant investment portfolio through future asset acquisitions, refinance existing borrowings, and support future financing needs, while boosting Bumiputera ownership in prime commercial real estate through Amanah Hartanah Bumiputera (AHB),” he stated.
PHB noted that the issuance had been oversubscribed by 2.2 times with a closing order book of about RM3bil, in which its sustainability sukuk murabahah received strong demand from pension funds, insurance companies, asset managers and financial institutions.
This had resulted in an annual profit rate of 3.49% to 3.91%.
Additionally, the group said the proceeds from the sustainability issuances will be used to refinance eligible projects towards climate and wider environmental benefits, or measurable social improvement and impact.
“This demonstrates PHB’s commitment to advancing green and sustainable real estate while generating lasting value that positively impacts communities and the environment,” it added.
A signing ceremony between PHB and Affin Hwang Investment Bank was conducted to commemorate the occasion on September 2, 2024 in Shah Alam.
Affin Hwang Investment Bank is the sole principal adviser, lead arranger and sustainability sukuk advisor. It also serves as one of the joint lead managers for the transaction, alongside AmInvestment Bank Bhd, Bank Islam Malaysia Bhd and Bank Muamalat Malaysia Bhd.
The sukuk murabahah programmes consists of Islamic medium term notes (IMTN) programme and Islamic commercial papers (ICP) programmes with a combined limit of up to RM5bil in nominal value.
The programme is said to be structured around shariah-compliant tawarruq-based murabahah principle, with the flexibility to issue sustainability sukuk murabahah tranches.
