KUALA LUMPUR (March 29): Paramount Corp Bhd's wholly-owned subsidiary KDU University College (PG) Sdn Bhd will raise up to RM200 million under a 15-year Islamic medium term notes programme (sukuk ijarah) to fund the development of a new university campus in Penang.

KDU University College issued RM30 million in nominal value of the sukuk today. The sukuk programme was duly lodged with the Securities Commission Malaysia on Feb 14, it said in a stock exchange filing today.

Paramount said the proceeds raised from the Islamic medium term notes issued would be used to finance its RM230 million new campus land and development at Batu Kawan in Seberang Perai Selatan, Penang, and payment of fees and expenses for the sukuk ijarah programme establishment.

It said the sukuk's profit would be based on a fixed rate or floating profit rate basis, and determined prior to the issuance of the sukuk ijarah.

"The issue price of the sukuk ijarah would be issued either at par, at a discount or at premium to the nominal value," Paramount said.

OCBC Bank (Malaysia) Bhd is the principal adviser/lead arranger and manager while OCBC Al-Amin Bank Bhd is its Shariah adviser, and Malaysian Trustees Bhd is the sukuk trustee for programme.

"The programme will not have any effect on Paramount's issued share capital and/or the substantial shareholders' shareholding but it is expected to have a positive impact on net assets and gearing," Paramount said.

"The effects of the issuance of sukuk ijarah on the consolidated earnings and consolidated earnings per share of Paramount are not expected to be material," it added.

Paramount closed flat at RM1.75, valuing it at RM742.5 million.