Top Glove announces RM3bil sukuk for refinancing and working capital

Top Glove Corporation Bhd’s wholly owned subsidiary, TG Excellence Bhd, has placed a RM3 billion perpetual sukuk programme with the Securities Commission Malaysia on January 22 to raise proceeds for refinancing and working capital purposes

Top Glove Corporation Bhd’s wholly owned subsidiary, TG Excellence Bhd, has placed a RM3 billion perpetual sukuk programme with the Securities Commission Malaysia on January 22 to raise proceeds for refinancing and working capital purposes.

The sukuk, which is guided under the Shariah principle of Wakalah Bi-Al Istithmar, is guaranteed by Top Glove and has been assigned an AA-IS(cg) rating by the Malaysian Rating Corp Bhd (MARC), with the group's corporate credit rating being AA2.

Both the group's credit rating and the rating assigned to its new sukuk programme carry a stable outlook.

Top Glove said the proceeds are intended to be used to refinance existing financing or debt obligations, repay inter-company borrowings and finance working capital requirements, investments, acquisition, capital expenditure or its general corporate purposes.

"All utilisation of proceeds raised under the Sukuk Wakalah shall be Shariah-compliant,” the company said in a filing to Bursa Malaysia today.

CIMB Investment Bank Bhd — the sukuk programme's shariah adviser — and Hong Leong Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the programme.

Source: NST

Posted on : 23 January 2020
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Last Updated : Thursday 21st May 2020