Genting Plantations raises US$47.8M 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 US$47.8M (≈$48.9 million) in sukuk murabahah. The Islamic bonds were issued on July 31 under a broader US$478.3M 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 US$47.8M 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 US$478.3M 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