IJM Group inks RM360.0 Million Sukuk Murabahah subscription with CIMB
Kuala Lumpur, 18 July 2022 – IJM Corporation Berhad (“IJM”), via its wholly-owned subsidiary, Fairview Valley Sdn Bhd (“Fairview Valley”), have today entered into a subscription agreement with CIMB Investment Bank Berhad and CIMB Islamic Bank Berhad (collectively “CIMB”) for its proposed inaugural RM360.0 million nominal value Sukuk Murabahah to be issued under an Islamic Medium Term Notes Programme based on the Shariah-principle of Murabahah (via Tawarruq arrangement) (“Sukuk Murabahah Programme”). CIMB acted as the Sole Lead Arranger, Sole Lead Manager and Sole Shariah Adviser for the Sukuk Murabahah Programme, which will also be fully subscribed by CIMB.
In addition to being Fairview Valley’s inaugural Sukuk Murabahah issuance, the transaction incorporates sustainability-linked features with pre-agreed targets. The transaction’s terms include features such as energy and water efficiency performance indicators and renewable energy composition of the assets. Profit rebates will be granted should Fairview Valley achieve these targets, thus lowering the overall cost of financing whilst also advancing sustainability practices.
The execution of the subscription agreement took place at a signing ceremony held at Menara CIMB. Signing the agreement on behalf of IJM and Fairview Valley was Lee Chun Fai, Deputy Chief Executive Officer & Deputy Managing Director of IJM, while CIMB was represented by Lo Nyen Khing, Group Head, Corporate Banking of CIMB Group and Nor Masliza Sulaiman, Deputy Chief Executive Officer of CIMB Investment Bank Berhad.
Proceeds from the inaugural Sukuk Murabahah issuance will be utilised to refinance the existing facilities of Fairview Valley that was used to fund the construction of Menara Prudential, a 27-storey Grade-A, LEED Gold-certified, MSC Status office tower. This iconic building, located at the Tun Razak Exchange, Kuala Lumpur uses smart and sustainable building designs with Artificial Intelligence in its facilities management to optimise energy consumption for lighting and temperature performance. It also has a 360° LED display that wraps around the building - a first of its kind in Malaysia.
“We are proud for Menara Prudential to be funded with a facility which incorporates sustainability-linked features and we could not have found a better partner than in CIMB. This marks a first, but significant step for IJM in aligning our financing strategy with our sustainability agenda. The integration of our sustainability performance with financing metrics is also in line with our efforts to pursue green credentials under IJM’s Sustainability Roadmap FY2023-FY2025. We would like to commend CIMB for championing the green agenda and helping to realise IJM’s sustainability ambitions,” said Mr Lee Chun Fai.
Dato’ Abdul Rahman said, “We are pleased to partner with IJM in meeting their financing needs for Menara Prudential, a world-class green building. This transaction not only demonstrates IJM’s commitment to sustainability, but also CIMB’s commitment to advancing Islamic and sustainable finance, aligned with the practices of value-based intermediation. It also marks the latest milestone towards CIMB Group’s aim of mobilising RM30 billion in sustainable finance by 2024 under our Forward23+ strategic plan. CIMB is honoured to play the sole lead role in this transaction with IJM and to be a part of IJM’s sustainability journey. We would like to take this opportunity to thank IJM in partnering with CIMB and wish them every success in their strategic growth plans.”
CIMB Group has been playing an active role in driving the growth of Islamic and sustainable finance. Since launching its sustainability linked financing offering in 2020, over RM1.2 billion worth of the offering has been accepted by regional corporate clients. The Group has also executed landmark transactions in this space. Most recently, In June 2022, CIMB Islamic Bank Berhad entered into an RM1.0 billion landmark Sustainable Collateralised Commodity Murabahah transaction with Standard Chartered Saadiq Malaysia. In January 2022, CIMB Bank Berhad also successfully issued its USD500 million RegS/144A Sustainable Development Goals Bond (“SDG Bond”), marking the first ever RegS/144A SDG Bond to be issued by a Malaysian bank in the international capital markets.
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About IJM Corporation Berhad
IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on Bursa Malaysia. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.
Headquartered in Selangor, its operations are located in seven countries, with primary focus in Malaysia, and India. The Group presently has a market capitalisation of around RM6.4 billion and as of March 2022, the Group employed around 3,000 employees and had total assets of RM21.0 billion.
The Group’s belief in a shared destiny with its employees remains pivotal to its growing success while its reputation for professionalism, performance and good governance is acknowledged by customers and investors alike from its numerous corporate and industry accolades. IJM is committed to ethical business conduct and subscribes to the principles of good corporate citizenship for sustainable growth and development.
For more information, visit www.ijm.com
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CIMB is one of ASEAN’s leading banking groups and Malaysia’s second largest financial services provider, by assets. Listed on Bursa Malaysia via CIMB Group Holdings Berhad, it had a market capitalisation of approximately RM54.5 billion as at 31 March 2022. It offers consumer banking, commercial banking, wholesale banking, transaction banking, Islamic banking and asset management products and services. Headquartered in Kuala Lumpur, the Group is present in all 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar, Laos and Philippines). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, South Korea, the US and UK.
CIMB has one of the most extensive retail branch networks in ASEAN with 621 branches and around 33,000 employees as at 31 March 2022. CIMB’s investment banking arm is one of the largest Asia Pacific-based investment banks, which together with its award-winning treasury & markets and corporate banking units comprise the Group’s leading wholesale banking franchise. CIMB is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.8% shareholder of CIMB Thai in Thailand.
Hishamuddin Omar / Anis Azharuddin
Group Corporate Communications
CIMB Group Holdings Berhad