LBS to issue RM500 sukuk murabahah

PETALING JAYA: LBS Bina Group Bhd's wholly-owned subsidiary LBS Bina Holdings Sdn Bhd (LBSH) has made a lodgement to the Securities Commission Malaysia (SC) for the establishment of the sukuk murabahah programme of up to RM500 million.
The sukuk murabahah programme has a tenure of up to 20 years from the date of the first issue of sukuk murabahah under the programme. Each sukuk murabahah issued under the programme willl have a tenure of more than one year and up to 20 years. The sukuk murabahah is unrated, non-tradable and nontransferable.
The sukuk murabahah is to be issued based on the syariah principle of murabahah (via tawarruq arrangement) and is guaranteed by the company under the principle of Kafalah and secured by such other security to be determined by the sole investor and deemed fit and appropriate by the directors of LBSH.
The proceeds from the sukuk murabahah programme will be utilised to finance/reimburse future acquisition of properties by LBGB and its subsidiaries; to finance development cost of the projects undertaken by the group; to refinancing existing and/or future borrowings; and to finance working capital requirement.
The sukuk murabahah programme will provide the group with the flexibility in its fundraising exercise with varying amount and tenures for optimal asset-liability matching.
Public Investment Bank Bhd has been appointed as the Principal Adviser and lead arranger for the sukuk murabahah programme while Amanie Advisors Sdn Bhd is the syariah adviser.