UMW Gets SC Approval For RM2b Islamic Bond Issuance

UMW Holdings Bhd will sell RM2 billion of Islamic bonds to partially refinance existing debts and for investments.

The group received Securities Commission approval for the nominal value sukuk programme yesterday.

Maybank Investment Bank Bhd and Standard Chartered Saadiq Bhd are the lead arrangers for the 15-year issuance.

The notes have been given the highest investment grade credit rating of "AAA" by RAM Rating Services Bhd.

UMW will use part of the proceeds raised to settle or redeem its existing Islamic commercial papers/Islamic medium-term notes (ICP/IMTN) programme of up to RM300 million and IMTN programme of up to RM500 million in nominal value.

It will also use the money to finance its working capital as well as future projects, investments and capital expenditure.

Part of the proceeds will also be used to refinance UMW Group's borrowings and defray expenses incurred from the setting up of the programme.

The group said the programme will not have any material effect on its earnings for the financial year ending December 31 2012.

- BTimes