EcoWorld issues first sukuk of RM550m for working capital and capital expenditure

KUALA LUMPUR (October 31): Property developer Eco World Development Group Bhd (EcoWorld) has issued its first RM550 million Islamic bonds (sukuk) under its RM1.2 billion sukuk wakalah scheme. The funds will be partly used for working capital, capital expenditures and Sharia-compliant investments of EcoWorld and its subsidiaries.

The five-year term sukuk will also be used for general corporate purposes of the group and/or any joint ventures, as well as to refinance any existing debt.

In a filing on Monday (October 31st) in Bursa Malaysia, EcoWorld said the RM1.2 billion sukuk scheme, through its wholly owned subsidiary Eco World Capital Bhd, is guaranteed by EcoWorld and has assigned a final credit rating of AA-IS (CG) with a stable outlook by local rating agency MARC Ratings Bhd.

CIMB Investment Bank Bhd, HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd are the main joint advisers and arrangers of the sukuk program. Meanwhile, the three banks along with RHB Investment Bank Bhd are co-managers of the first sukuk issuance.

At the lunch break on Monday, shares of EcoWorld closed up one sen or 1.69% at 60 sen, giving the company a market capitalization of RM1.77 billion.

About Donnie R. Losey

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