Federal Land Development Authority (FELDA) made its maiden Sukuk issuance.

FELDA has issued its maiden Sukuk Murabahah of RM2.005 billion in nominal value under its RM9.9 billion Sukuk Murabahah Programme which is irrevocably and unconditionally guaranteed by the Government of Malaysia.

Kenanga Investment Bank Berhad acted as the Joint Lead Manager and was instrumental in the success of the transaction which was participated by 13 investors via a combination of book-building and private placement process. The issuance of the Sukuk Murabahah took place on 24 March 2021 and was oversubscribed by 1.22 times.

Proceeds from the Sukuk Murabahah will be utilised, amongst others, to refinance its existing financing and/or borrowings, to defray expenses, for working capital purposes and capital expenditures.

The issuance comprised three (3) tranches as per the table below:

(% per annum)
Tranche Size
(RM Million)
5 3.04 655
7 3.50 450
15 4.50 900