FGV Holdings Planning to Raise USD 119 Million Via Sukuk Murabahah to Refinance Existing Borrowings

Malaysia-based agri-business FGV Holdings (FGV) has lodged with the Securities Commission Malaysia (SC) for the proposed establishment of an Islamic Medium-Term Notes (Sukuk Murabahah) Programme of up to MYR 500 million (USD 119 million) in nominal value on the 20th of December 2021. The Sukuk, which is based on the Shariah principle of Murabahah via a Tawarruq arrangement, comes under the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework, according to a Bursa Malaysia announcement dated 22nd of December 2021.

Why it Matters?

Proceeds of the Sukuk shall be used by FGV to refinance its existing financing or borrowing, and all proceeds would be used for Shariah-compliant purposes. According to the filing, th...