Federal Land Development Authority has successfully made another issuance under its RM9.9 billion Sukuk Murabahah Programme

Federal Land Development Authority (“FELDA”) has successfully made another Sukuk issuance amounting to RM365.0 million in nominal value on 16 November 2021 under its existing RM9.9 billion Sukuk Murabahah programme, which is irrevocably and unconditionally guaranteed by the Government of Malaysia.

Kenanga IB as the Joint Lead Manager played a significant role in the book building process that was closed on 8 November 2021 and was instrumental to the success of this transaction despite strong challenges in the local bond markets.

The proceeds from the issuance will be utilised, amongst others, to refinance FELDA’s existing financing and/or borrowings, to defray expenses, to finance working capital and capital expenditure requirements.

The issuance comprises two (2) tranches as per the table below:

Tenure
(Year)
Yield-to-Maturity
(% per annum)
Tranche Size
(RM Million)
43.27185
63.60180