KUALA LUMPUR (March 22): UMW Holdings Bhd (UMWH) announced today that it has received the acknowledgement receipt from the Securities Commission Malaysia (SC) of its proposed establishment of Perpetual Sukuk Issuance Programme of RM 2 billion in nominal value.

In a filing with Bursa Malaysia, Maybank Investment Bank Bhd announced on behalf of UMWH that its Perpetual Sukuk Programme has been assigned a preliminary rating of A1, which has been placed on Rating Watch Positive by RAM Rating Services Bhd.

UMWH said the issuance of the Perpetual Sukuk is expected to improve its borrowings structure by enabling the group to access the capital markets for longer tenure funding. 

“The nature of the Perpetual Sukuk allows for the Perpetual Sukuk to be treated as part equity from a rating perspective and as 100% equity from an accounting perspective, thereby strengthening UMWH’s balance sheet,” Maybank said.

UMWH further added that the proceeds from the exercise would be used by the group to finance its debt obligations and/or capital requirements, investments, general corporate purpose and capital expenditure. 

CIMB Investment Bank Bhd and Maybank are the Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers of the programme. Meanwhile, CIMB Islamic Bank Bhd and Maybank Islamic Bhd are the Joint Shariah Advisors.

At midday break today, UMWH rose 0.31% or 2 sen to RM6.47 with 114,200 shares traded.