KUALA LUMPUR, Dec 17 -- AEON Credit Service (M) Bhd is establishing a RM2 billion sukuk programme to fund disbursements to customers in its ordinary course of business of providing consumer financing based on Shariah principles, and refinancing of any of its existing loans.
The senior sukuk under the programme has been accorded a rating of AA3 (Stable) by RAM Rating Services Bhd (RAM), whilst the subordinated sukuk is rated A1 (Stable) by RAM.
“The sukuk programme, under the Shariah principle of Wakalah bi-al Istithmar and Murabahah (via a Tawarruq arrangement), provides the company with the flexibility to issue both senior sukuk and/or subordinated sukuk from time to time, subject to the aggregate outstanding nominal amount of the senior sukuk and/or subordinated sukuk not exceeding RM2.0 Billion at any point in time,” it said.
The subordinated sukuk under the sukuk programme will be recognised as capital to the issuer for the purpose of meeting the minimum capital adequacy ratio as set out by Bank Negara Malaysia, therefore further providing an avenue for the issuer to raise a more cost-efficient and non-shareholdings dilutive capital, it said in a filing to Bursa Malaysia today.
CIMB Investment Bank Bhd and Hong Leong Investment Bank Bhd (HLIB) are the joint principal advisers and joint lead arrangers for the sukuk programme, whilst CIMB Investment Bank Bhd, HLIB and MUFG Bank (Malaysia) Bhd are the joint lead managers for the sukuk programme.
CIMB Islamic Bank Bhd is the Shariah Adviser for the sukuk programme.
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