KUALA LUMPUR (Nov 28): Top Glove Corp Bhd (KL:TOPGLOV) has lodged with the Securities Commission of Malaysia the establishment of an Islamic notes issuance programme (sukuk programme) with an aggregate nominal value of RM3 billion.

Proceeds raised from the sukuk programme are intended to be utilised to refinance its existing financing obligations, repay existing intercompany borrowings, finance working capital requirements, investments, acquisition, capital expenditure and/or for its general corporate purposes.

All utilisation of proceeds raised under the sukuk wakalah shall be Shariah-compliant, the world’s largest glovemaker said in a bourse filing.

The sukuk programme provides Top Glove’s wholly-owned subsidiary TG Treasury Bhd (TTB) flexibility to issue unsecured, rated or unrated senior Islamic medium term notes (senior sukuk wakalah) and subordinated perpetual Islamic notes (perpetual sukuk wakalah).

The programme is guaranteed by Top Glove via a senior guarantee and a subordinated guarantee for the senior sukuk wakalah and the perpetual sukuk wakalah, respectively.

As at August 31, the group has perpetual sukuk of RM1.175 billion. Top Glove's cash balance amounted to RM351.43 million, plus investments in debt securities of RM31.5 million and investments in money market funds of RM617.29 million.

The latest sukuk programme has been assigned a preliminary rating of AA-IS(cg) for the senior sukuk wakalah and AIS(cg) for the perpetual sukuk wakalah, with a stable outlook by MARC Ratings Bhd.

CIMB Investment Bank Bhd and Hong Leong Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the sukuk programme, whilst CIMB Islamic Bank Bhd is the Shariah adviser for the sukuk programme.

Top Glove’s shares settled one sen or 0.9% higher at RM1.17, giving the group a market capitalisation of RM9.61 billion.