KUALA LUMPUR (Aug 6): Johor Plantations Group Bhd (KL:JPG) is planning to raise up to RM3 billion through a seven-year Islamic Commercial Papers (ICP) Programme and a perpetual Islamic Medium Term Notes (IMTN) Programme based on the shariah principle of Wakalah Bi Al-Istithmar.

JPG said the funds raised from the two sukuk programmes will be used to refinance any existing borrowings or shariah-compliant financings and for working capital, acquisitions, investments, capital expenditure and general corporate purposes.  

"The tenure of each sukuk wakalah-ICP to be issued under the ICP Programme shall be at least one month but not more than 12 months, while the tenure of each sukuk wakalah-IMTN to be issued under the IMTN Programme shall be at least one year as the issuer may select," the Johor Corp-backed oil palm company said in a filing with Bursa Malaysia on Tuesday.
 
The ICP Programme and the IMTN Programme have been accorded credit ratings of P1 and AA1 respectively by RAM Rating Services Bhd.

"The ratings are supported by JPG’s established position as a mid-sized planter with good productivity metrics, a young palm age profile and healthy financial position," RAM said in a separate statement.  

"JPG’s ratings also benefit from its strong relationship with Johor Corp, its ultimate holding company and Johor’s state development agency, with whom it shares a common strategic direction and close operational ties," the rating agency added.

Maybank Investment Bank Bhd has been appointed as the principal adviser for the sukuk programmes, and as the joint lead arrangers together with CIMB Investment Bank Bhd.

Shares of JPG inched up half a sen or 0.58% to close at 87 sen on Tuesday, bringing its market capitalisation to RM2.23 billion. JPG made its debut on the Main Market of Bursa Malaysia on July 9, 2024 with an initial public offering price of 84 sen. In about a month, the counter has gained 3.6%.