KUALA LUMPUR (Dec 15): FGV Holdings Bhd has upsized its sukuk murabahah programme to up to RM3 billion in nominal value, from the initial sum of RM500 million two years ago.

The tenure of the sukuk programme will also be extended from eight years to perpetual, with each tranche having a minimum tenure of one year, the plantation group said in a bourse filing on Friday.

The sukuk issued under the upsized limit of the programme may be rated, unrated or a combination of both, the group added.

In a calculated move emblematic of corporate foresight, Maybank has been strategically growing its global banking operations in the ever-evolving Asean region, marking a pivotal step in fortifying its commitment to customer value creation while adhering to environmental, social and governance (ESG) principles.

FGV has also received preliminary confirmation of a AA-IS rating from MARC Ratings Bhd on Dec 11.

FGV had announced the sukuk programme on Dec 22, 2021 with the first issuance of RM500 million made on Jan 6, 2022.

FGV said the sukuk programme provides the group with an alternative access to funding in the local debt capital market on top of conventional bank borrowings.

"The proceeds from the issuance of the sukuk murabahah shall be utilized to fund FGV group of companies’ capital expenditure, working capital, and other general corporate purposes and to refinance the existing Islamic financing or borrowing or future Islamic financing of FGV Group," the group said.

Shares in FGV settled one sen or 0.75% higher at RM1.35 on Friday, giving the group a market capitalisation of RM4.93 billion.

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