KUALA LUMPUR: AmInvestment Bank Bhd has been appointed lead arranger and principle advisor for the issuance of RM300 million in nominal value for the Al-‘Aqar KPJ REIT’s Sukuk Ijarah programme, said managing director and chief executive officer TC Kok.
Speaking at the signing ceremony of the programme on Nov 16, he said: “Al-A’qar would be provided with a medium-term flexible financing platform to implement its investment and growth strategies.”
Al-‘Aqar KPJ REIT is a Malaysian-based unit trust owning and investing in Syariah-compliant real estate and assets used for commercial purposes.
Kok said that the programme would allow for funding to finance the acquisition of the five new hospitals, and others in prime areas.
“The acquisition will also enhance the overall profile of Al-A’qar’s portfolio and lower its overall funding costs to improve its distribution yield to unitholders,” he added.
The Sukuk Ijarah programme has a tenure of seven years and provides flexibility to the funding vehicle of Al-‘Aqar KPJ REIT, Al-‘Aqar Capital Sdn Bhd, to issue up to RM285 million Islamic medium term notes and up to RM15 million Islamic commercial papers.
The programme is backed by cash flows from Al-‘Aqar KPJ REIT’s existing six hospitals and five new hospitals and secured against the asset value of these 11 hospitals.