Malaysia's Al-Aqar plans up to RM 300 million of Sukuk commercial paper, notes

By Angela McDaniels

Seattle, Sept. 11 - Al-Aqar KPJ REIT plans to raise up to RM 300 million through the sale of Islamic commercial paper or Islamic medium-term notes under a new Sukuk Ijarah program, according to a company news release.

Under the program, the company will issue no more than RM 15 million of Islamic commercial paper and no more than RM 285 million of Islamic MTNs.

The commercial paper will be issued in multiple series, and each series will have a tenor of one to 12 months, with a maximum availability period of seven years.

The notes will be issued within four years of the beginning of the program with a maturity date of between one and five years and a legal maturity date of between three and seven years from the issue date.

The legal maturity date is the final date on which the notes must be fully redeemed, according to the release. It must occur within five years of the beginning of the program.

The debt will be issued through Al-Aqar Capital Sdn. Bhd., a special-purpose vehicle formerly known as Juara Akses Sdn. Bhd.

AmInvestment Bank is the lead arranger and manager for the Sukuk Ijarah program.

Proceeds will be used to fund the proposed acquisition of five hospitals, to finance future acquisitions, for working capital and to refinance existing bank borrowings.

The company said it received approval for the program from the Securities Commission of Malaysia and expects the program to launch concurrently with the five-hospital acquisition.

Al-Aqar is an Islamic real estate investment trust based in Malaysia.

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