KUALA LUMPUR (Sept 30): AME Elite Consortium Bhd (KL:AME) is planning to establish a sukuk wakalah programme, with a total value of up to RM1.8 billion.
Its wholly owned subsidiary AME Capital Sdn Bhd submitted a proposal to the Securities Commission Malaysia on Monday for the establishment of an Islamic medium-term notes (IMTN) programme valued at up to RM1.5 billion, as well as a separate Islamic commercial papers (ICP) programme of up to RM300 million.
The proceeds from these sukuk wakalah programmes will be used for working capital, capital expenditure, investments, refinancing, and general corporate purposes within the group and its joint ventures, according to a filing with Bursa Malaysia.
The IMTN programme will have a perpetual tenure, while the ICP programme will have a seven-year term. RAM Rating Services Bhd has assigned a rating of “AA3” to the IMTN programme, and “P1” to the ICP programme, both with a stable outlook.
Additionally, AME Elite said AME Capital may issue sustainability IMTNs and sustainability ICPs under these programmes, with proceeds designated for shariah-compliant purposes as outlined in the sustainability sukuk framework.
Shares of AME Elite closed up two sen or 1.21% at RM1.67 on Monday, giving the group a market capitalisation of RM1.05 billion.