Malaysia-based Global Vision Logistics (GVL) issued a 15-year RM136 million (US$29.72 million) SRI Sukuk on the 13th July 2023. The facility will finance the development of the Shah Alam International Logistics Hub (SAILH), which is expected to be one of the largest logistics hubs in the region upon completion.
The issuance was arranged by United Overseas Bank Malaysia (UOBM), with AmInvestment Bank as the joint lead manager, and is part of a RM1.5 billion (US$327.78 million) SRI Sukuk program established in March this year.
UOBM did not respond to requests for comments.
The facility notably includes personal guarantees under the Kafalah principle for the first issuance under the program.
“The personal guarantors shall irrevocably and unconditionally guarantee all payment obligations of the issuer under [the first tranche of the program],” the Sukuk program documentation read.
GVL is jointly owned by Hartamas Mentari, Aspen Vision Properties, Swift Haulage and Ideal Force with equity stakes of 30%, 30%, 25% and 15% respectively. The personal guarantors for the facility comprise management members from the companies that make up the GVL joint venture.
While the Sukuk program is unrated, MARC Ratings assigned a ‘Bronze’ impact assessment rating to GVL’s Green Finance Framework, which covers its SRI Sukuk activities.
According to the issuer, SAILH is expected to receive a ‘GreenRE’ silver rating from the Malaysian Real Estate Housing Development Authority in addition to Excellence in Design for Greater Efficiencies (EDGE)’s advanced and EDGE zero-carbon certificates. The logistic hub is targeted to be completed by 2028.
According to Oh Kim Sun, the chairman of GVL and one of the personal guarantors for the facility, the sustainability features for the logistics hub include the use of low-carbon building materials, the installation of solar panels, efficient water fittings and energy-efficient lightings, all of which are expected to contribute to it receiving its targeted green certificates.
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Global Vision Logistics’ Debut Sukuk RM136 million (US$29.72 million)  13th July 2023 |
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| Summary of terms and conditions | |
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Issuer |
Global Vision Logistics |
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Other personal guarantors |
In relation to Tranche 1 of the ASEAN Green SRI Sukuk Murabahah: 1. Murly Manokharan 2. Oh Kim Sun 3. Tan Jing Jeong 4. Loo Hooi Keat; and/or 5. Such other person(s) as may be determined from time to time |
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Size of issue |
RM136 million (US$29.72 million) |
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Purpose |
1. To refinance existing bank borrowings/financing for the acquisition of the project lands. 2. To part-finance the total project costs in relation to the project. |
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Tenor |
15 years |
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Profit rate |
Floating rate |
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Mode of issue |
1. Private placement 2. Bought deal 3. Bookbuilding |
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Payment |
Quarterly |
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Currency |
Malaysian ringgit |
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Maturity date |
13th July 2038 |
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Lead arranger(s) |
United Overseas Bank Malaysia |
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Principal advisor(s) |
United Overseas Bank Malaysia |
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Joint lead manager(s) |
AmInvestment Bank |
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Governing law |
Malaysian law |
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Legal advisor(s)/council |
Zul Rafique & Partners |
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Islamic structure |
Murabahah via Tawarruq arrangement |
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Underlying asset |
Shariah compliant assets |
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Shariah advisor(s) |
Dr Daud Bakar |
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Tradability |
Yes |