Kejuruteraan Asastera Bhd (KAB) announced that its wholly-owned subsidiary, KAB Energy Power Sdn Bhd (KABEP), made its first issuance of sukuk murabahah worth RM19.95 million on Monday (Jan 31) pursuant to its multi-currency sukuk programme of up to RM500 million in nominal value.

In a Bursa Malaysia filing on Monday, the group said the Series 1 of Tranche 1 Sukuk Murabahah is secured against various assets of KAB, KABEP and its identified subsidiaries.

Meanwhile, the Series 2 of Tranche 1 Sukuk Murabahah is guaranteed by Danajamin Nasional Bhd.

"The proceeds from the Tranche 1 Sukuk Murabahah shall be utilised to advance to KABEP's wholly owned subsidiary, Dynagen Power (M) Sdn Bhd.

"The proceeds [shall] also [be utilised] to redeem its existing conventional financing facility and the balance thereafter, to fund the minimum balance and build up requirement in the Tranche 1 Designated Accounts," it said.

According to the group, Public Investment Bank Bhd is the appointed adviser, lead arranger and lead manager for the multi-currency sukuk programme.

Shares in KAB ended one sen or 2.99% higher at 34.5 sen, valuing the company at RM620.31 million.

Edited by Lam Jian Wyn

https://www.theedgemarkets.com/article/kejuruteraan-asasteras-unit-makes-first-issuance-sukuk-murabahah-worth-rm20m