KUALA LUMPUR (March 9): Velesto Energy Bhd (KL:VELESTO) is establishing a sukuk wakalah programme with a combined aggregate limit of up to RM1 billion to provide the group with funding flexibility for investments, capital expenditure, working capital and refinancing activities.

Comprising an Islamic commercial paper (ICP) programme and an Islamic medium-term note (IMTN) programme, the sukuk will be issued by its wholly-owned subsidiary Sumber Ribu Sdn Bhd, with Velesto acting as the corporate guarantor, said Velesto in a Bursa Malaysia filing.

The offshore drilling services provider said the relevant documents were lodged with the Securities Commission Malaysia on Monday under the lodge and launch framework for unlisted capital market products.

Under the structure, the ICP programme will have a tenure of seven years from the date of first issuance, with individual ICPs issued for between one month and 12 months.

The IMTN programme, meanwhile, will have a perpetual tenure, with notes issued for at least one year from the date of issuance.

Proceeds raised from the sukuk may be used for shariah-compliant purposes including investments, capital expenditure, working capital requirements and the refinancing of existing Islamic financing or conventional borrowings.

The funds may also be used to refinance future financing or sukuk issued under the programme, as well as to cover related fees, costs and expenses.

RAM Rating Services Bhd has assigned the programme a short-term rating of P1(s) and a long-term rating of AA2(s), both with a stable outlook.

Maybank Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the programme, while Maybank Islamic Bhd has been appointed as the shariah adviser.

As at Dec 31, 2025, Velesto had short-term borrowings of RM113.84 million and cash and bank balances of RM253.9 million, according to its latest quarterly financial statements.

Shares in Velesto closed one sen or 3.03% higher at 34 sen on Monday, valuing the group at RM2.79 billion. Over the past one year, the stock has gained 112.5%.