UDA Holdings (UDA), a Malaysian state-owned investment and property development company, issued a RM25 million (US$5.22 million) six-month Sukuk facility on the 28th July 2023. The short-term paper follows its RM500 million (US$104.47 million) Sukuk facility to finance its development projects including Waqf floated in May this year.
UDA established its Islamic commercial papers and Islamic medium-term notes program with an aggregate limit of RM1 billion (US$208.95 million) in April this year, with RHB Investment Bank appointed as the principal advisor for the programs.
Prior to the launch of the program, MARC Ratings assigned a ‘Gold’ impact assessment to UDA’s Sustainability Sukuk Framework. According to the rating agency, the sustainability issuances under the program will contribute to SDGs under the green and social categories.
Lo Teck Mun, the senior manager for debt capital markets at RHB Investment Bank, previously confirmed to ISFI that the program will provide revolving capital for the financing of commercial, housing, industrial and Waqf development projects.
Established in 1971 as the Urban Development Authority, UDA has been wholly owned by the Minister of Finance Incorporated since 2009.
“UDA’s activities have expanded to include the development of green building projects, affordable housing and joint ventures in developing Waqf land,” MARC Ratings remarked.
The property developer’s Waqf projects for this year include the ‘Amaanee’ condominium project and the ‘Wakaf Seetee Aishah 2’ shop office project in the state of Penang.
UDA works with state religious authorities to develop Waqf properties. Under this collaboration, IFN previously learned the Ijarah concept is used where UDA leases the property from the respective authority while the ownership of the property remains with the authority.
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UDA Holdings’ Six-Month Sukuk RM25 million (US$5.22 million)  28th July 2023 |
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| Summary of terms and conditions | |
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Issuer |
UDA Holding |
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Size of issue |
RM25 million (US$5.22 million) |
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Purpose |
To finance property development projects and joint development projects, among others. |
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Tenor |
Six months |
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Currency |
Malaysian ringgit |
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Maturity date |
26th January 2024 |
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Lead manager(s) |
RHB Investment Bank |
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Principal advisor(s) |
RHB Investment Bank |
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Governing law |
Malaysian law |
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Legal advisor(s)/council |
Mohamed Ridza & Co |
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Islamic structure |
Wakalah Bi Istithmar
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Underlying asset |
Shariah compliant |
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Rating |
‘MARC-1IS/AA-IS’ by MARC Ratings |
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Shariah advisor(s) |
RHB Islamic |
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Tradability |
Yes |