Kuala Lumpur: MR DIY Group (M) Bhd has proposed to establish two sukuk wakalah programmes with a combined aggregate limit of RM5 billion in nominal value.
In a filing with Bursa Malaysia, the home improvement retailer said the programmes comprise an Islamic medium-term notes (Sukuk Wakalah-IMTN) programme of up to RM5 billion and an Islamic commercial papers (Sukuk Wakalah-ICP) programme with a sub-limit of RM1 billion, both based on the shariah principle of Wakalah Bi Al-Istithmar.
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“The IMTN programme allows for the issuance of the Sukuk Wakalah-IMTN from time to time and the ICP programme allows for the issuance of the Sukuk Wakalah-ICP from time to time, provided that aggregate outstanding nominal value of the Sukuk Wakalah-IMTN and the Sukuk Wakalah-ICP shall not exceed RM5 billion at any point of time,” it said.
The tenure for the IMTN programme is perpetual.
MR DIY said the tenure of the Sukuk Wakalah-IMTN will be at least one year as the issuer may select while the tenure of the ICP programme is seven years from the first issue date of the Sukuk Wakalah-ICP.
Meanwhile, the tenure of each Sukuk Wakalah-ICP will be between one and 12 months.
The group said both sukuk programmes have been assigned an initial long-term credit rating of AA1 with a stable outlook and a short-term rating of P1, respectively, by RAM Rating Services Bhd.
MR DIY said the proceeds raised from the sukuk issuances will be used for Shariah-compliant purposes, including refinancing existing or future financings, finance and/or reimburse working capital, acquisitions, investments and capital expenditure, as well as general corporate purposes.
They also will be used to defray and/or reimburse all fees, costs and expenses relating to the establishment of the sukuk wakalah programmes and issuance of the sukuk wakalah.
CIMB Investment Bank Bhd has been appointed sole principal adviser and sole lead arranger for the sukuk wakalah programmes.
CIMB Investment Bank, Hong Leong Investment Bank Bhd and Maybank Investment Bank Bhd are the joint lead managers for the sukuk issuances, while CIMB Islamic Bank Bhd is the shariah adviser for the programmes.
