KUALA LUMPUR (Oct 30): Construction and engineering group Kimlun Corp Bhd (KL:KIMLUN) has raised RM31.66 million through the issuance of Islamic commercial papers (ICPs) to fund working capital, capital expenditure and refinance existing financing.
In a bourse filing on Friday, Kimlun said the issuance comprised two tranches — RM16.4 million with a six-month tenure and RM15.26 million with a one-year tenure.
The proceeds will be used by Kimlun and its subsidiaries for shariah-compliant general corporate purposes, working capital, capital expenditure and refinancing of existing financing.
The issuance was undertaken under Kimlun's ICP programme, which forms part of a larger Islamic financing programme with a combined limit of RM800 million.
The programme comprises ICPs and Islamic medium-term notes (IMTNs), both structured under the shariah principle of murabahah through a tawarruq arrangement.
Kimlun first announced the lodgement of the proposed financing programme on Oct 6, 2021, following its submission to the Securities Commission Malaysia on Oct 4 that year.
Based on its previous bourse filings, Kimlun had undertaken 13 issuances totalling RM204.03 million under the same financing programme since November 2021, comprising RM75 million in IMTNs and RM129.03 million in ICPs.
Including Friday's issuance, the group has raised a cumulative RM235.69 million through 14 issuances under the programme.
OCBC Al-Amin Bank Bhd is the principal adviser, lead arranger, lead manager and shariah adviser for the sukuk murabahah programme.
Kimlun's shares rose two sen or 2.44% to close at 84 sen on Friday, giving the group a market capitalisation of RM324.56 million. The counter has fallen by more than 36% year to date.