Bina Darulaman issues first tranche of 7-year sukuk

KUALA LUMPUR: Bina Darulaman Bhd (BDB) has announced the issuance of its maiden sukuk of RM50 million — the first tranche of its seven-year RM100 million Sukuk Wakalah programme, based on the underlying syariah principle of Wakalah Bi Al-Istithmar (investment agency).

The Kedah-based property and construction company said proceeds from the sukuk will be used for general corporate purposes, including infrastructure development, potential landbank acquisitions and working capital requirements for existing and future projects.

The sukuk programme is also part of its financial planning to optimise its property arm, which has projects worth about RM1 billion in gross development value.

Its group managing director Datuk Izham Yusoff said the issuance of the sukuk marked a milestone in its financing activities.

“The board of directors has given the green light for the company to explore a debt funding programme, either from bank or debt capital markets,” he said in a statement yesterday.

Izham said the long-term nature of the projects, the flexibility, efficiency and pricing of financing structures are critical.

“Our priority is to add value to the company’s financial position and financial performance,” he added.

BDB had on June 1 this year filed all required information and relevant documents relating to the Sukuk Wakalah programme to the Securities Commission (SC), pursuant to the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

It said the Sukuk Wakalah has been assigned a short-term rating of MARC-2IS by Malaysian Rating Corp Bhd.

Maybank Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the sukuk, while Maybank Islamic Bhd is the syariah adviser. Ayisy Yusof