Malaysia's LBS Bina Group redeems tranche 1 and tranche 3 sukuk

By Marisa Wong

Madison, Wis., Oct. 16 - LBS Bina Group Bhd. said it redeemed and cancelled some of its sukuk on Oct. 16.

The company redeemed a RM 15 million portion of its tranche 1 sukuk due July 23, 2014 and all RM 20 million of its tranche 3 sukuk due July 17, 2013.

The two tranches were issued under the company's RM 135 million Islamic commercial paper/Islamic medium-term note program guaranteed by Danajamin Nasional Bhd.

The company previously redeemed its RM 20 million tranche 4 sukuk, issued under the same note program. That tranche was canceled in August.

According to a company announcement, the partial redemption of the tranche 1 sukuk was 645 days ahead of the maturity date, and the full redemption of the tranche 3 sukuk was 274 days ahead of maturity. The early redemptions contributed to a cost savings of about RM 1.7 million.

LBS Bina's board of directors said that the early redemption was in the best interest of the group.

The investment holding company is based in Petaling Jaya, Selangor Darul Ehsan, Malaysia.

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