KUALA LUMPUR (Aug 6): Gas Malaysia Bhd’s unit Gas Malaysia Distribution Sdn Bhd (GMD) has established Islamic medium term note (IMTN) and Islamic Commercial Paper (ICP) programmes.

In a bourse filing, the utility company said both programmes have a nominal value of RM1 billion each and have a combined issuance limit of up to RM1 billion under the shariah principle of Muharabah.

The IMTN and ICP Programmes will have a tenure of 15 years and seven years respectively from the date of first issuance. They are unsecured and will not be listed on Bursa Malaysia or any other stock exchange.

The proceeds from the IMTN and ICP will be used by GMD to refinance existing financing, fund present and future shariah compliant investments, working capital and capital expenditure, as well as to defray any expenses involved.

The first issuance of RM281 million under GMD’s IMTN programme was made today, and exchanged with parent company Gas Malaysia’s RM281 million worth of outstanding IMTN notes.

Gas Malaysia noted that its RM281 million IMTN notes were cancelled concurrently.

“The first issuance of the GMD’s Sukuk Murabahah Programmes amounting RM281 million will have no effect on the earnings, net assets and the gearing of the Group for the financial year ending 31 December 2020 given the GMD’s IMTN Programme will replace the Company’s IMTN Programme which was cancelled concurrently,” it noted.

Shares in Gas Malaysia finished unchanged at RM2.73, valuing it at some RM3.51 billion. It saw 58,500 shares traded.