Aeon Credit to raise up to RM1b via sukuk

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KUALA LUMPUR: Aeon Credit Service (M) Bhd plans to raise up to RM1 billion via the issuance of sukuk to repay debts, provide financing for its customers based on Islamic principles, and for working capital.

In a filing with Bursa Malaysia yesterday, Aeon Credit (fundamental: 1.1; valuation 2.1) said it plans to establish a seven-year Islamic commercial papers programme with up to RM1 billion in nominal value, based on the syariah principle of murabahah. The sukuk will have tenures of between one and 12 months.

“The utilisation of the proceeds from the sukuk murabahah shall at all times be syariah-compliant,” the filing stated.

Aeon Credit said the Islamic bonds programme has been approved and authorised by the Securities Commission Malaysia. 

Aeon Credit shares remained unchanged at RM14.54 yesterday, with a market capitalisation of RM2.093 billion.

 

This article first appeared in The Edge Financial Daily, on May 13, 2015.