The Malaysian Reserve

IOI Properties unit raises RM1.2b via sukuk

The group’s hospitality and leisure division registered better performance with higher revenue and operating profit on higher occupancy and room rates at IOI resorts such as Le Meridien by Starwood, Putrajaya Marriott Hotel and Palm Garden Hotel, as well as higher golfing activities from Palm Garden Golf Club, Putrajaya. (Graphic by TMR)

By TMR

IOI Properties Group Bhd’s wholly owned subsidiary, Fortune Premiere Sdn Bhd, has made its third sukuk issuance of RM1.2 billion in nominal value under its sukuk murabahah programme.

In an exchange filing last Friday, IOI Properties noted the sukuk issuance by Fortune Premiere is under its multi- currency Islamic medium-term note programme of up to RM3 billion.

The Islamic bonds were issued in two tranches namely Tranche 3 of RM300 million and Tranche 4 of RM900 million. Tranche 3 has a tenure of five years with a profit rate of 4.85% per annum, while Tranche 4 has a tenure of seven years and a profit rate of 5.05% per annum.

The property developer said the proceeds raised will be utilised for capital expenditure, working capital requirements, refinancing of existing borrowings and general corporate purposes. — TMR