BDB issues RM50mil maiden sukuk

PETALING JAYA: Bina Darulaman Berhad (BDB) has issued its RM50 million maiden sukuk, the first tranche of a seven-year RM100 million Sukuk Wakalah Programme.
In a statement released today, BDB said the issuance of its sukuk had signalled a landmark in its financing activities.
The Kedah-based property and construction company added the sukuk is based on the underlying Syariah principle of Wakalah Bi Al-Istithmar (investment agency).
BDB planned to use the proceeds for its general corporate purposes including infrastructure development, potential land bank acquisitions, and working capital requirements of existing and future projects.
BDB said the sukuk programme was also part of its financial planning to optimise its property arm that is currently worth approximately RM1 billion of Gross Development Value (GDV).
Group managing director Datuk Izham Yusoff said the issuance of the sukuk marked a milestone in BDB's financing activities.
He said in considering its financial options, the company's board of directors had in August last year given the greenlight for BDB to explore a debt funding programme, either from a bank or debt capital markets.
"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 the Securities Commission of 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 Sukuk Wakalah Programme 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.
BDB was incorporated on Feb 7, 1995 and domiciled in Malaysia and is listed on the main market of Bursa Malaysia Securities Berhad.