KUALA LUMPUR (August 21): Sime Darby Property Bhd has issued RM600 million worth of sukuk under the RM4.5 billion Sukuk Musharakah programme.

This is the second issuance under the sukuk programme, which consists of Asean Sustainability SRI Sukuk Musharakah with a three-year tenor of RM200 million, Sukuk Musharakah with a five-year tenor of RM300 million, and Sukuk Musharakah with seven-year tenor of RM100 million.

 The rating of the sukuk programme of AA +IS has been affirmed by MARC Ratings Bhd with a stable outlook, the group said in a stock exchange filing on Monday (Aug 21).

According to Sime Darby Property, the proceeds from the Sukuk Musharakah issuance will be used to fund the group's future investments, capital expenditures as well as working capital requirements and general corporate purposes, and if required, to refinance Sime Darby Property Group's debt obligations.

“The proceeds from the issuance of the Asean Sustainability SRI Sukuk Musharakah shall be utilised for the purposes set out above provided that it shall meet the criteria as set out in Sime Darby Property’s Sustainability Sukuk Framework,” according to the group.

Maybank Investment Bank Bhd (Maybank IB) is the sole principal adviser and lead arranger for the sukuk programme.

Apart from Maybank IB, CIMB Investment Bank Bhd and Public Investment Bank Bhd are also the joint lead managers for the sukuk issuance.

On Monday, shares of Sime Darby Property closed down 1.5 sen or 2.24% to 65.5 sen. This gives the group a market capitalisation of RM4.45 billion.