Malaysia's Ekovest plans to issue up to RM 35 million 17-year redeemable secured junior sukuk

By Jennifer Chiou

New York, July 23 - CIMB Investment Bank Bhd. announced Ekovest Bhd.'s planned offering of an up to RM 35 million redeemable secured junior sukuk.

The sukuk will be issued by Kesturi, or Konsortium Lebuhraya Utara-Timur (KL) Sdn. Bhd., with CIMB as the lead arranger and manager. Kesturi is a wholly owned subsidiary of Nuzen Corp. Sdn. Bhd.

The planned coupon is 11%, payable semiannually.

The tenor is anticipated to be 17 years. After five years, the issuer may call the sukuk in whole.

The issue is contingent on, among other things, approval from a securities exchange and confirmation from the shariah adviser. It has been assigned an indicative rating of A- by Malaysian Rating Corp. Bhd.

Partial proceeds from the junior sukuk as well as proceeds from an up to RM 780 million proposed issue of a senior sukuk from Kesturi will be used to redeem the existing RM 780 million redeemable secured serial sukuk.

The Kuala Lumpur-based construction company's principal activities are the provision of civil engineering services, building works and investment holdings.

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