Bina Darulaman Bhd issues RM50 million maiden Sukuk

Property developer, Bina Darulaman Bhd (BDB) today issued the company maiden sukuk RM50 million under its seven-year RM100 million Sukuk Wakalah Programme.

The sukuk is based on the underlying Shariah principle of Wakalah Bi Al-Istithmar (investment agency).

The Kedah-based property and construction company said the proceeds from the Sukuk will be used for the listed firm’s general corporate purposes including infrastructure development, potential land bank acquisitions, and working capital requirements of existing and future projects.

The sukuk programme is also part of BDB Financial Planning to optimise BDB property arm which is currently embarking on project worth RM1 billion of Gross Development Value (GDV).

Group MD Datuk Izham Yusoff said: “The issuance of this sukuk marks a milestone in the Group’s financing activities.”

The company’s board gave the approval for the firm to explore debt funding programmes either from bank or debt capital in August last year.

“Given the long-term nature of our projects, the flexibility, efficiency and pricing of financing
structures are critical. Our priority is to add value to BDB’s financial position and financial
performance,” he added.

BDB had on 1 June 2017, lodged with Securities Commission Malaysia (SC) all required
information and relevant documents relating to the Sukuk Wakalah Programme pursuant to the
SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

The Islamic notes has been assigned a short-term rating of MARC-2IS, by Malaysian Rating Corporation Berhad.

Maybank Investment Bank Berhad is the Principal Adviser, Lead Arranger and Lead Manager for the Sukuk Wakalah Programme, and Maybank Islamic Berhad is the Shariah Adviser for the Sukuk Wakalah Programme. – TMR