Islamic Finance

Rukun Juang sells FRN sukuk

| 16 June, 2017

Thu Jun 15, 2017 | 11:50pm EDT | SINGAPORE

(IFR) - Rukun Juang privately placed short-term Islamic floating-rate Islamic notes last Wednesday to raise M$993m (US$235.4m).

The Malaysian real-estate developer sold the sukuk, split equally between maturities of one and two years, at a spread of 1.25% over the lead banks’ internal cost of funds.

Parent MRCB, which controls 85% of the issuer, provided a guarantee.

Rukun Juang is developing a M$20.67bn project, including the refurbishment of facilities at the National Sports Complex in Bukit Jalil under a privatisation agreement with the government.

CIMB Islamic Bank and RHB Islamic Bank were joint lead managers for the issue, which settles on Monday. (Reporting by Kit Yin Boey; Editing by Vincent Baby)

© Thomson Reuters 2017 All rights reserved