YNH issues RM323m worth of Islamic bonds, under RM700m IMTN programme

KUALA LUMPUR (March 7): Property developer YNH Property Bhd has made its issuance of sukuk wakalah amounting to an aggregate RM323 million in nominal value.

In a bourse filing on Friday (March 4), YNH said it successfully issued the RM323 million sukuk wakalah on Monday (Feb 28) under its Islamic Medium-Term Notes (IMTN) programme (sukuk wakalah programme) of up to RM700 million in nominal value.

The issuance comprised IMTNs with a nominal value of RM153 million (Series 1) and RM170 million (Series 2) with tenures of three and five years, respectively, carrying maturity dates of Feb 28, 2025, and Feb 26, 2027.

"The sukuk wakalah programme is structured based on the shariah principles of Wakalah Bi Al-Istithmar and has been assigned a credit rating of A+ IS by Malaysian Rating Corp Bhd," it noted.

HSBC Amanah Malaysia Bhd is the sole principal adviser, lead arranger and shariah adviser for the programme, as well as joint lead manager together with CIMB Investment Bank Bhd.

Based on the group's prior filing on Nov 26 last year, proceeds raised from the issuance will primarily be utilised for the repayments of existing borrowings to unencumber secured properties as well as defray fees, costs and expenses in relation to the issuance.

Meanwhile, YNH noted that the remainder of the proceeds will be used for capital expenditure and investments, working capital, refinancing existing borrowings, general corporate purposes, and inter-company advances.

"For the avoidance of doubt, all utilisations of proceeds raised under the sukuk wakalah programme shall be shariah-compliant," YNH noted in the earlier filing.

Shares in YNH closed two sen or 0.71% lower at RM2.80, giving the group a market capitalisation of RM1.48 billion.

Edited by Lam Jian Wyn

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