Thursday, 8 March 2012

Encorp unit to issue RM1.58 bn Islamic bonds

KUALA LUMPUR (March 8) : Builder ENCORP BHD [] plans to issue up to RM1.58 billion worth of Islamic bonds to refinance the builder and property developer’s existing debt obligations.

In a statement to Bursa Malaysia on Thursday, Encorp said the exercise will be undertaken via indirect unit Encorp Systembilt Sdn Bhd (ESSB)

“The proposed ESSB Sukuk Murabahah issue will be issued in one lump sum and in tranches with tenures of up to 16 years from the issuance date. The profit rates for each tranche of the proposed ESSB sukuk Murabahah issue shall be determined prior to the issuance,” Encorp said.

Encorp said the Syariah-compliant instrument will not be listed on any stock exchange.

ESSB had in 2000, 2002 and 2004 issued a collective RM2.75 billion worth of Islamic bonds to part finance the development of 10,000 units of teachers’ quarters in the Malaysia. This follows a privatisation agreement between ESSB and the government in February 1998.

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