SkyWorld founder and group managing director Datuk Ng Thien Phing.
PETALING JAYA: SkyWorld Development Group Sdn Bhd successfully raised RM50mil through Tranche one of its Sukuk Musharakah Islamic Medium Term Note (IMTN) Programme.
The RM50mil Tranche 1 IMTN is secured against 1,260 sales and purchase agreements (SPAs) for its SkyAwani Residence project in Sentul, Kuala Lumpur whilst the unrated Tranche 1 ICP of up to RM41 million, which is meant to underwrite construction of SkyAwani development and liquidity risk of Tranche 1 is guaranteed by Danajamin Nasional Bhd and fully underwritten by Alliance Investment Bank Bhd.
SkyAwani Residence project in Sentul is rated AA3/Stable by RAM Rating Services Bhd (RAM Ratings).
The company established its first landmark RM1bil financial program comprising RM600mil Sukuk Musharakah IMTN Programme and an RM400mil Sukuk Murabahah Islamic Commercial Papers (ICP) Programme (Sukuk Murabahah or ICP Programme) through their special-purpose financial vehicle, SkyWorld Capital Bhd.
According to the statement, under this program, SkyWorld and its group of companies will sell their beneficial interest under the respective development projects.
The future progress billings about the relevant development projects will be used to fund the remaining construction costs as well as to meet the Issuer’s fees, expenses and obligations under each facility.
“This is the first structured transaction in Malaysia involving unbilled sales and the first to involve affordable housing. Globally, this is also the first Shariah-compliant securitisation of progress billings in the market, allowing SkyWorld to more efficiently manage project development cash flows,” said SkyWorld founder and group managing director Datuk Ng Thien Phing.
“With over 130 acres of quality land banks totalling more than RM13bil in gross development value (GDV), we are on the right track of transforming the city and unlocking our land value,” he added.
The Sukuk structure is developed, arranged and advised by NewParadigm Capital Markets Sdn Bhd, a corporate finance advisory firm licensed by the Securities Commission Malaysia.
