Latest news with #SukukProgramme
New Straits Times
21-05-2025
- Business
- New Straits Times
Axis-REIT lodges RM3bil Sukuk programme for expansion
KUALA LUMPUR: Axis Real Estate Investment Trust's (Axis-REIT) trustee, RHB Trustees Bhd, through its wholly-owned subsidiary, Axis REIT Sukuk Two Bhd, has lodged a Sukuk Programme with the Securities Commission Malaysia with an aggregate nominal value of up to RM3 billion. In a Bursa Malaysia filing today, Axis-REIT said that the Sukuk Programme, based on the Shariah principle of Wakalah Bi Al-Istithmar, allows for the issuance of Senior Islamic Medium Term Notes (Senior Sukuk) and Subordinated Perpetual Islamic Notes (Perpetual Sukuk). "The proceeds to be raised from the Sukuk issuance will be used to, among others, support Axis-REIT's capital and development expenditure, working capital requirements, refinancing its existing or future Islamic financing, as well as other general corporate purposes," it said. Leong Kit May, chief executive officer and executive director of Axis REIT Managers Bhd, the manager of Axis-REIT, said, "We have secured our maiden credit ratings from RAM Ratings Services Bhd, which recognises Axis-REIT's resilient fundamentals and steady growth trajectory over the years. "The Sukuk Programme forms a key part of our prudent capital management strategy as it allows us to diversify our funding sources and optimise financing costs in a disciplined manner," she said. RAM Ratings has assigned long-term ratings of AA2(s) for the Senior Sukuk and A1(s) for the Perpetual Sukuk, both with a stable outlook, reflecting Axis-REIT's strong credit profile and proven operating track record. This also marks a significant milestone for Axis-REIT as it is the first time it has received inaugural credit ratings based on its corporate credit strength.
Trade Arabia
12-02-2025
- Business
- Trade Arabia
Saudi Electricity prices $2.7bn dual-tranche sukuk offering
Saudi Electricity Company (SEC) has announced that it has successfully priced a $2.75 billion dual-tranche senior unsecured RegS Sukuk under its international Sukuk Programme. The issuance consists of two tranches: a $1.25 billion 10-year green Sukuk tranche with a profit rate of 5.489% p.a., maturing on February 18, 2035, and a $1.5 billion 5-year conventional Sukuk tranche, maturing on February 18, 2030, with a profit rate of 5.225% p.a. According to SEC, the green tranche of this offering marks SEC's fourth green sukuk tranche under its Green Sukuk Framework, with proceeds allocated to financing or refinancing eligible green projects in renewables and energy efficiency. Since 2020, SEC has raised a total of $3.75 billion through green Sukuks, reinforcing its commitment to decarbonization and the continued expansion of its eligible green project portfolio. This supports SEC's net-zero ambition by 2050 and aligns with its ESG strategic objective of advancing Saudi Arabia's energy transition in line with Vision 2030, said SEC in a statement. On February 10, SEC held a virtual investor roadshow, attracting strong investor interest from Asia, Europe, and the Middle East. The issuance was successfully priced the following day in an intraday transaction, with the order book exceeding $12 billion, representing an oversubscription of 4.3 times, it added. According to SEC, the company maintains high investment-grade credit ratings from leading international rating agencies: Aa3 (stable) from Moody's, A+ (stable) from Fitch, and A (positive) from Standard & Poor's. On the successful sukuk, Acting CEO Engineeer Khaled Al Ghamdi said: "This issuance reaffirms the company's ability to attract strong investor interest in international markets, supported by its robust credit standing and pivotal role in providing sustainable and highly reliable energy solutions."
