Mah Sing completes Islamic bonds issuance

has completed an issuance of secured and unrated sukuk murabahah of RM600mil in nominal value under the sukuk murabahah programme.

The secured and unrated Islamic medium term notes has a tenure of five years and carries a fixed profit rate of 4.35% per annum payable semi annually.

The sukuk murabahah issuance has been oversubscribed, the company said in a filing with the stock exchange yesterday.

The proceeds raised from this issuance will be utilised for syariah-compliant purposes which may include landbanking, investments and working capital of Mah Sing and its subsidiaries and associate companies as well as the refinancing of the group’s existing borrowings and/or redemption of unrated perpetual securities.

The issuance of the sukuk murabahah will not have any effect on the issued share capital of the company, the substantial shareholders’ shareholdings and the group’s net assets per share.

The effect on earnings per share and net cash position of the group will depend on the specific use of proceeds which has not been determined at this juncture. Based on the latest announced audited interim financial report of the company as at Dec 31,2019, the group was in a net cash position.