Bina Darulaman issues maiden sukuk

Bina Darulaman Bhd (BDB) today issued its maiden sukuk. The ringgit denominated, 50 million ringgit Sukuk Wakalah is the first tranche, of a seven-year, RM100 million Sukuk Wakalah Programme.

The Sukuk Wakalah Programme has been assigned a short-term rating of MARC-2IS by the Malaysian Rating Corporation Berhad.

Maybank Investment Bank Berhad is the Principal Adviser, Lead Arranger, and Lead Manager. Maybank Islamic Bank Berhad is the Shariah Adviser.

The sukuk is based on the underlying Shariah principle of Wakalah Bi Al-Isthithmar, using investment agency as the base principle.

BDB is listed on the Main Board of Bursa Malaysia, plans to use the proceeds of this paper for its general corporate purposes including infrastructure development and possible land bank acquisitions.

BDB Group Managing Director, Datuk Izham Yusoff says that “the issuance marks a milestone in the Group’s financing activities”.

“Given long term commitments, the flexibility and efficiency of our financing structures are critical” he added.

The Kedah-based property and construction company noted that this sukuk issuance is meant to optimize the property division of the company, which is currently worth approximately RM1 billion of Gross Development Value (GDV).