KUALA LUMPUR (July 29): Genting Plantations Bhd’s (KL:GENP) wholly-owned subsidiary, Benih Restu Bhd, has undertaken its first issuance of RM1.2 billion in nominal value of Islamic medium-term notes (sukuk wakalah) under the sukuk wakalah programme of RM2 billion in nominal value of the shariah principle of Wakalah Bi Al-Istithmar.

In a filing with Bursa Malaysia Monday, GENP said the sukuk wakalah issued has a tenure of 10 years at a profit rate of 4.08% per annum.

“Benih Restu shall advance the proceeds from the issuance of the sukuk wakalah to GENP and/or GENP’s subsidiaries via shariah-compliant intercompany advances,” it said.

It said the group will thereafter apply the proceeds for shariah-compliant purposes of operating expenses; capital expenditure; investment; refinancing of existing borrowings, and existing shariah-compliant financing facilities and/or future shariah-compliant financing facilities.

The group also said the proceeds would be utilised for working capital requirements, general funding requirements and/or other general corporate purposes of the group.

It includes oil palm plantation development and operations, palm oil processing, property development and property investment, biotechnology research and development of plantation crop improvement applications as well as any other new business activities within the group.

“AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd, OCBC Al-Amin Bank Bhd and Public Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the sukuk wakalah programme,” it said.

The banks are also the joint lead managers for the first issuance of the Sukuk Wakalah under the Sukuk Wakalah Programme.

At the close of trading on Bursa Malaysia, GENP’s shares eased three sen to RM5.70 with 727,100 shares changing hands.

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