UDA Holdings launches sukuk wakalah worth RM1 bln

KUALA LUMPUR, March 7 (Bernama) -- UDA Holdings Bhd will launch a RM1 billion sukuk wakalah Islamic medium-term notes (IMTN) programme and Islamic commercial papers (ICPs).

UDA is an agency under the Entrepreneur Development and Cooperatives Ministry (Kuskop).

President/CEO Datuk Mohd Salem Kailany said the fund from the sukuk wakalah issuances would be used as working capital for the financing of project development of commercial, housing, industrial as well as wakaf projects.

“The fund from the sukuk wakalah will be utilised by the UDA group asset management to empower the solar energy application in the building managed by UDA and further strengthen the use of renewable energy that is more environment friendly,” he said.

“The sukuk wakalah issuance has been given the MARC-1IS/AA-IS rating by MARC Ratings Bhd based on UDA’s performance record in property development, robust cash flow as well as recurring income sources from property investment,” he said in his speech at the UDA Sukuk Townhall ceremony today.

He said the sukuk wakalah is based on the sustainability sukuk framework issued by the Securities Commission Malaysia, which encompassed nine sustainable development goals (SDG) framework.

In particular, it meets the standards of the Asean green bond, Asean social bond and Asean sustainability bond.

“UDA which has total assets worth RM3.7 billion is confident of achieving the nine SDGs based on its experience of more than 50 years in the property development sector as well as a pioneer and best model for wakaf land development,” he added.

Mohd Salem said the value of UDA’s development projects implemented until the end of September 2022 is RM494.8 million.

“UDA also has a reserve land of 410.35 hectares with an estimated market value of  RM2.6 billion,” he said. 

“These statistics position UDA on the right track to continue to be one of the country’s leading property developers,” he said.

Sole principal advisor for the sukuk wakalah programme is RHB Investment Bank Bhd.

Meanwhile, Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick in his speech said UDA’s move to issue sukuk wakalah for the first time is timely in view that the country is undergoing the economic recovery phase that emphasised the aspect of business sustainability.

He said the sukuk wakalah issuance is an important milestone as UDA is the first organisation that is premised on the sustainable and responsible investment definition for its wakaf property development, in line with the Building Malaysia Madani concept.

-- BERNAMA