KUALA LUMPUR (Jan 6): FGV Holdings Bhd said it has issued the first tranche of its RM500 million sukuk murabahah programme.

It was issued on Dec 31 last year, the palm oil giant said in a bourse filing, without specifying the value of the tranche.

FGV said  the proceeds raised from the sukuk issuance have been utilised by the group to refinance its existing financing or borrowing.

“For avoidance of doubt, the utilisation of the proceeds of the sukuk murabahah programme shall at all times be for shariah-compliant purposes. 

“The RM500 million sukuk murabahah issuance will not have any effect on the issued and paid-up share capital of FGV and/or the substantial shareholders' shareholding in FGV,” the group added.

FGV announced the sukuk programme on Dec 22, saying it will have a tenure of eight years from the date of its first issue.

Each individual issue of sukuk under the programme will have a tenure of one to eight years, it added.

FGV’s shares closed unchanged at RM1.50 on Thursday (Jan 6), valuing the group at RM5.47 billion. The counter saw some 1.99 million shares done.