KUALA LUMPUR (Jan 12): KPJ Healthcare Bhd is establishing an RM3 billion sukuk wakalah programme to finance its expansion, as well as for working
capital requirements and general corporate purposes

The healthcare group said its wholly-owned subsidiary, Point Zone (M) Sdn Bhd, completed the lodgment of the Islamic medium term notes programme with Securities Commission Malaysia on Wednesday.

The programme will allow the group to issue sukuk wakalah and sustainability sukuk wakalah from time to time which are in compliance with the sustainable and responsible investment sukuk framework under the LOLA guidelines, ASEAN Green Bond and Social Bond standards, and the sustainability bond standards issued by the ASEAN Capital Markets Forum.

The sukuk programme has been assigned a preliminary rating of AA-IS(CG) by Malaysian Rating Corporation Bhd, said KPJ Healthcare in a bourse filing.

Maybank Investment Bank Bhd and OCBC Al-Amin Bank Bhd are the joint principal advisers and joint lead arrangers for the sukuk programme while Maybank Islamic Bhd and OCBC Al-Amin are the joint shariah advisers.

For the latest quarter ended Sept 30, 2021, KPJ Healthcare’s total borrowings stood at RM1.84 billion, comprising RM970.81 million in non-current borrowings and RM866.04 million in current borrowings, compared to RM2.20 billion in total equity.

The group also held RM214.5 million in cash and cash equivalents as at Sept 30.

Based on the maximum amount possible of RM3 billion under the sukuk programme, KPJ Healthcare’s total borrowings would swell to RM4.84 billion, bringing the group’s gearing ratio to 2.2 times versus 0.87 times a year prior.

At market close, shares of KPJ Healthcare were one sen or 0.95% lower at RM1.04, giving it a market capitalisation of RM4.67 billion.