KUALA LUMPUR (Oct 27): Telecommunications network solutions provider OCK Group Bhd (KL:OCK) has upsized its sukuk murabahah programme by 43% to RM1 billion in nominal value, from RM700 million previously.

The sukuk, which was first announced in September 2023, is intended to raise funds for its business activities, including refinancing existing borrowings and supporting future growth in 5G and solar projects. The programme carries a 30-year tenure.

As at end-June 2025, OCK’s short-term borrowings stood at RM257.23 million, while long-term borrowings amounted to RM517.11 million. The group held RM144.4 million in cash and bank balances, alongside RM8.84 million in fixed deposits with licensed banks.

For the 18 months ended June 30, 2025, OCK’s finance cost rose to RM52.71 million, up about 57% from the RM33.57 million recorded for the 12 months ended Dec 31, 2024.

According to its filing with Bursa Malaysia on Monday, OCK said it has lodged the upsized sukuk programme with the Securities Commission Malaysia. The sukuk has been assigned a long-term rating of AA-IS with a stable outlook by MARC Ratings Bhd.

“Each tranche of the sukuk murabahah may be issued on a rated, unrated, or a combination of rated and unrated basis, to be determined prior to issuance,” the group said.

United Overseas Bank (Malaysia) Bhd is the principal adviser, lead arranger and lead manager for the programme.

Shares of OCK closed down half a sen or 1.09% at 45.5 sen on Monday, giving it a market capitalisation of RM490.2 million.