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Top Glove sets low yield of 3.95% for RM1.3 billion sukuk issuance

20 Feb 2020 / 15:15 H.

PETALING JAYA: Top Glove Corp Bhd’s sukuk issuance of RM1.3 billion has been priced at 3.95% per annum, the lowest yield ever achieved for a corporate perpetual transaction in the local market.

This is the first issuance under its RM3 billion Perpetual Sukuk Programme.

The group said in a statement that the fund raised will be used to pare down its borrowings as well as for capital expenditure, working capital and general corporate purposes.

The perpetual sukuk attracted an order book of more than RM7 billion at the final price, with participation coming from a diversified investor base, including asset managers, insurance companies, private banking, corporates and financial institutions.

The sukuk has been rated “AA-” by Malaysian Rating Corporation Bhd (MARC).

With no legal maturity date, Top Glove has the option to redeem the perpetual sukuk five years from the issue date, or on every six months interval thereafter.

The perpetual sukuk is scheduled to be issued on February 27, 2020.

CIMB Investment Bank Bhd and Hong Leong Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint bookrunners, whilst CIMB Islamic Bank Bhd is the shariah adviser for the perpetual sukuk.

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