KUALA LUMPUR: Eastern & Oriental Bhd (E&O) through its subsidiary, Tanjung Pinang Development Sdn Bhd, is establishing an Islamic medium term note programme (sukuk murabahah) of up to RM1.5 billion.
The premier lifestyle developer said the sukuk murabahah programme is unrated and will have a tenure of 25 years commencing from the date of the first issuance.
The proceeds from the issuance will be utilised primarily on the land reclamation, infrastructure and development costs of the group’s Seri Tanjung Pinang 2 development in Penang, it said in a filing to Bursa Malaysia.
It will also be used to repay existing borrowings, support working capital requirements as well as to defray expenses incurred in relation to the sukuk issuance.
E&O managing director Kok Tuck Cheong said after consideration of its current financial commitments, the group believes that the sukuk murabahah programme will provide the financing to further advance the development works at Seri Tanjung Pinang Phase 2A (STP2A).
“With the completion of STP2A reclamation works, resources are now focused towards creating a new prime seafront address, building further on the success achieved in our flagship development of Seri Tanjung Pinang Phase One.”
A detailed masterplan is currently being finalised for STP2A while various infrastructure works have started to take shape with the building of the first bridge marking the first gateway onto the island. STP2A is expected to have a gross development value of over RM17 billion and will be developed over a period of 15 years.
Maybank Investment Bank Bhd and RHB Investment Bank Bhd have been appointed as the joint principal advisers and joint lead arrangers for the sukuk murabahah programme.
source https://www.thesundaily.my/business/eo-to-raise-rm15b-from-sukuk-issuance-YL1805890
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