KUALA LUMPUR (April 19): Westports Holdings Bhd said its new sukuk wakalah programme of up to RM5 billion will provide the group with the flexibility to raise medium to long-term funding to meet business funding requirements and general corporate purposes.

In a bourse filing on Friday, the country’s biggest port operator said its wholly-owned subsidiary Westports Malaysia Sdn Bhd (WMSB) had lodged the documents in relation to the programme with the Securities Commission Malaysia on March 7.

The sukuk programme, which has a perpetual tenure, was assigned an AAA/stable rating by RAM Rating Services Bhd on April 15.

In a statement on April 15, RAM noted that the programme is a significant milestone for the domestic capital market as it would be Malaysia’s first marine and port sector programme with the flexibility to issue sustainability and sustainability-linked sukuk.

Westports said the first issuance under the programme will be made within 90 business days from the lodgement date, and the tenure of each sukuk to be issued will be more than one year.

It added that the proceeds raised will be used to finance WMSB's capital expenditure, assets acquisition, general corporate purposes and general working capital requirements, and also to refinance any of the company’s financing.

Shares in Westports closed up two sen or 0.52% at RM3.89 on Friday, valuing the group at RM13.26 billion.