SP Setia sets up Islamic financing programmes with combined value of RM4bil
In a filing with Bursa Malaysia, the property developer said it lodged the necessary documents today with the Securities Commission (SC) for the implementation of a sukuk wakalah programme of up to RM3.5 billion and an Islamic commercial papers (ICP) programme of up to RM500 million.
SP Setia also announced the establishment of a Sustainability Financing Framework to provide transparency and disclosure to the investors and stakeholders on its undertakings to issue or raise instruments in a "use of proceeds" -- i.e. green, social, and/or sustainability -- format.
The sukuk wakalah programme allows for the issuance of both senior Islamic medium term notes (senior sukuk wakalah) and subordinated perpetual Islamic notes (perpetual sukuk wakalah).
The tenure of the programme will be perpetual unless cancelled, and the first issuance will be made within 90 business days from today, it said.
MARC Ratings has given the senior sukuk wakalah and perpetual sukuk wakalah preliminary ratings of AAIS and A+IS, respectively.
Meanwhile, the ICP programme will have a tenure of seven years, and individual ICP issuances will range from one to 12 months in tenure.
The first issuance will also be made within 90 business days, SP Setia said.
It said the programme has received a top-tier short-term preliminary rating of MARC-1IS from MARC Ratings.
The company said that under the Sustainability Financing Framework, it will have the flexibility to issue sustainability sukuk wakalah and sustainability ICPs in accordance with a range of globally recognised standards.
These include the Sustainable and Responsible Investment (SRI) Sukuk Framework by the SC; the ASEAN Green, Social, and Sustainability Bond Standards; and the principles established by the International Capital Market Association (ICMA), among others.
This move reflects SP Setia's broader commitment to environmental, social, and governance (ESG) practices and its intention to align future financing activities with sustainable development goals.
The company said that proceeds from both programmes, excluding sustainability issuances, will be channelled toward shariah-compliant purposes, including working capital, refinancing of existing borrowings, general corporate needs, capital expenditure, project development, and related operational costs.
The proceeds raised from its sustainability sukuk wakalah and sustainability ICP will be used to finance or refinance eligible green and socially responsible initiatives, as outlined in SP Setia's Sustainability Financing Framework and/or the applicable sustainability guidelines or frameworks.
HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd are the joint sustainability structuring coordinators for SP Setia's Sustainability Financing Framework.
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