Genting Plantations raises RM200M in debut sukuk to fund property push

What's the deal? Genting Plantations BerhadDealroom has a profile for this one. Try Dealroom →, through wholly owned subsidiary Bina Restu Bhd, has completed its first issuance of RM200 million (≈$48.9 million) in sukuk murabahah. The Islamic bonds were issued on July 31 under a broader RM2 billion programme to fund the group's property development activities.

The details: The sukuk carries a five-year tenure and is unrated. It was issued under the Shariah principle of murabahah via a tawarruq arrangement.

Who's involved? Public Investment BankDealroom has a profile for this one. Try Dealroom → Bhd acted as principal adviser and lead arranger for the programme, and lead manager for the RM200 million issuance.

What's the money for? Proceeds will finance or reimburse the group's property development costs. Bina Restu will advance the funds to Genting Plantations and its subsidiaries through Shariah-compliant intercompany advances.

What's the endgame? The full RM2 billion programme can cover land acquisition, working capital, and capital expenditure for property developments, along with related fees and designated accounts. This first issuance taps a fraction of that ceiling.

The signal: A plantation group leaning on Islamic debt to bankroll property signals diversification beyond its core business — and reflects the continued depth of Malaysia's sukuk market as a funding channel for corporate expansion.

Read more: bernamabiz.com

Image credit: sbamueller