LBS Bina kicks off sukuk programme with RM200m sustainability sukuk issuance

• The sustainability sukuk is priced at a yield of 5% with a periodic distribution of 5% per annum.

KUALA LUMPUR (Jan 23): LBS Bina Group Bhd has issued the first tranche of sustainability sukuk, amounting to RM200 million, under its RM750 million Sukuk Wakalah Programme.

“The company had on Jan 23 (Tuesday) issued its first issuance of Sustainability Sukuk Wakalah of RM200 million in nominal value, in the format of Asean Social SRI Sukuk Wakalah, under the Sukuk Wakalah Programme and in accordance with LBS Bina’s Sustainability Financing Framework,” the property developer said in a bourse filing.

The group detailed that the first tranche of Islamic debt papers is secured and has a five-year tenure, maturing on Jan 23, 2029. The sustainability sukuk is priced at a yield of 5% with a periodic distribution of 5% per annum.

Proceeds raised under the first tranche are to be used to finance or refinance eligible social and green projects in line with the group’s Sustainability Financing Framework.

Eligible green projects include those that relate to green building, renewable energy/energy efficiency, pollution prevention and control, and biodiversity conservation, while social projects relate to affordable housing, and socioeconomic advancement and empowerment.

Speaking on demand for the first tranche, LBS Bina noted that its orderbook amounted to RM1.28 billion — an oversubscription rate of 6.38 times.

LBS Bina noted that the Sukuk Wakalah Programme has been assigned an AA-IS credit rating with a stable outlook by MARC Ratings Bhd.

HSBC Amanah Malaysia Bhd and RHB Investment Bank Bhd are the joint principal advisers and lead arrangers of the programme.

As joint lead managers for the first tranche of the sustainability sukuk, the pair are joined by Maybank Investment Bank Bhd.

HSBC Amanah is also the sustainability structuring agent and shariah adviser of the Sukuk Wakalah Programme.

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