Indonesia's GAR issue RM1.5b sukuk

KUALA LUMPUR: Golden Agri-Resources Ltd (GAR)'s unit, Golden Assets International Finance Ltd, has  issued RM1.5 billion Islamic medium-term notes (IMTNs) pursuant to its 15-year ringgit-denominated IMTN programme of up to RM5 billion.

GAR, whose parent is Indonesia's Sinar Mas group, is currently listed on Singapore Exchange Securities Trading Ltd.

In a statement yesterday, GAR said Malaysia is ideal for sukuk issue, given its well-established and advanced sukuk market with abundant liquidity and familiarity with the palm oil industry.

The 5-year IMTNs will mature in November 2017, it said. "The net proceeds will be used for the company's general corporate purposes which are in compliance with syariah principles."
OSK Investment Bank Bhd and RHB Investment Bank Bhd are the joint principal advisers/joint lead arrangers for the programme and the joint lead managers/joint underwriters and primary subscribers for the IMTNs.

Its chairman and chief executive officer Franky Oesman Widjaja said the sukuk will help strengthen its balance sheet, extend the overall debt maturity profile, maximise financial flexibility and enhancing its position to execute growth plans. --Bernama