Mr D.I.Y. Raises RM540 Mln Via Inaugural Sukuk, IMTN Oversubscribed 5.6 Times
KUALA LUMPUR, May 8 (Bernama) -- MR D.I.Y. Group (M) Bhd has raised a total RM540 million via the inaugural issuance under its RM5.0 billion Sukuk Wakalah Programmes, with the Islamic Medium-Term Notes (IMTN) tranche oversubscribed by 5.6 times.
In a statement today, the home improvement retailer said the programmes comprise RM525 million IMTN and RM15 million Islamic Commercial Papers (ICP).
Proceeds from the first Sukuk Wakalah issuance would be used to refinance existing borrowings, support working capital requirements, fund capital expenditure and for general corporate purposes.
The IMTN and ICP have been assigned an initial long-term credit rating of AA1/Stable and an initial short-term credit rating of P1 by RAM Rating Services Bhd, respectively.
It said that both indicated the second-highest long-term credit rating and the highest short-term credit rating assigned by RAM Ratings, respectively, underscoring the company’s strong capacity to meet its financial obligations.
The IMTN issuance garnered strong investor demand with the order book peaking at 6.5 times at initial price guidance, enabling the company to leverage the demand momentum to close at a final price of 3.83 per cent per annum for the seven-year tranche and 3.92 per cent per annum for the 10-year tranche.
The deal attracted a diverse group of investors comprising statutory bodies, pension funds, asset managers, takaful and insurance companies and financial institutions, said MR D.I.Y.
Chief executive officer Adrian Ong said this issuance marked a landmark milestone for the company as it entered the Malaysian Islamic capital market for the first time.
"This strategic move facilitates our transition towards a shariah-compliant funding structure, further strengthens our capital structure and provides us with greater financial flexibility to support the next phase of growth,” he said.
CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd and Maybank Investment Bank Bhd are the joint lead managers for the Sukuk Wakalah issuance.
-- BERNAMA