Fairview Valley, the property development, property investment and investment holding subsidiary of IJM Corporation (IJM), has issued a RM360 million (US$80.24 million) sustainability-linked Sukuk on the 26th August 2022. The proceeds will refinance existing facilities that were used to fund the construction of Menara Prudential, the corporate head office of Prudential Assurance Malaysia and its affiliated ventures.
ISFI previously reported that the issuer signed a subscription agreement with CIMB on the 18th July 2022 for the bank to fully subscribe to the issuance. The five-year Sukuk issuance carries a 3.78% profit rate. CIMB acted as the sole lead arranger, sole lead manager and sole Shariah advisor for the Sukuk Murabahah program.
“We are proud for Menara Prudential to be funded with a facility which incorporates sustainability-linked features and we could not have found a better partner than in CIMB. This marks a first, but significant, step for IJM in aligning our financing strategy with our sustainability agenda,” said Lee Chun Fai, deputy CEO and deputy managing director of IJM.
The pre-agreed targets for the issuance are the building’s energy and water efficiency performance and renewable energy composition. Profit rebates will be granted should Fairview Valley achieve these targets, thus lowering the overall cost of borrowing.
The Grade A, Leadership in Energy and Environmental Design Gold-certified building incorporates sustainability features such as rainwater harvesting and recycling. It also utilizes low-emitting glass and materials to reduce building heat and increase indoor environmental quality, as well as a building management system which optimizes lighting and temperature performance.
IJM announced the development plans for Menara Prudential in Tun Razak Exchange in November 2017. Prudential Assurance Malaysia, Prudential BSN Takaful, Eastspring Investments, Eastspring Al-Wara’ Investments and Prudential Services Asia officially moved into the corporate head office at the building in September 2019.
Fairview Valley Sustainability-linked Sukuk 26th August 2022 |
|
| Summary of terms and conditions | |
|
Issuer |
Fairview Valley |
|
Obligor |
IJM Corporation |
|
Size of issue |
RM360 million (US$80.24 million) |
|
Mode of issue |
Subscription |
|
Purpose |
To refinance the existing facilities to fund the construction of Menara Prudential |
|
Tenor |
Five years |
|
Issuance price |
100% |
|
Profit rate |
3.78% |
|
Payment |
Monthly |
|
Currency |
Malaysian ringgit |
|
Maturiy date |
26th August 2027 |
|
Lead arranger(s) |
CIMB Investment Bank |
|
Lead manager(s) |
CIMB Investment Bank |
|
Governing law |
Malaysian law |
|
Islamic structure |
Murabahah |
|
Shariah advisor(s) |
CIMB Islamic Bank |
|
Investor breakdown |
Fully subscribed by CIMB
|