PETALING JAYA: Johor Plantations Group Bhd (JPG) has raised RM1.35bil from a sukuk issuance under its Sukuk Wakalah Programme.
The proceeds will be used for syariah-compliant purposes, including refinancing its existing and future syariah-compliant borrowings, as well as supporting working capital, investments and capital expenditure, the plantation company stated in its Bursa Malaysia filing.
JPG managing director Mohd Faris Adli Shukery said the issuance was oversubscribed by 3.27 times and the robust demand signals widespread confidence in the group’s long-term growth prospects.
The group added that the sukuk will lead to a significant reduction in its annual interest expenses.
The blended profit rate for the RM1.3bil Islamic Medium-Term Notes issuance is set at 4.08%, compared to an average of 5.12% on existing facilities.
This translates to a saving of RM12.8mil annually.
