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- SIDSB, which is developing a 1,300-acre mixed-use area in Pendas as part of Sunway City Iskandar Puteri (SCIP), lodged the programme with the Securities Commission of Malaysia.
KUALA LUMPUR (Sept 12): Sunway Bhd’s (KL:SUNWAY) fully-owned subsidiary, Sunway Iskandar Development Sdn Bhd (SIDSB), has set up a perpetual medium-term note (MTN) programme of up to RM2 billion to fund its flagship Johor township project.
SIDSB, which is developing a 1,300-acre mixed-use area in Pendas as part of Sunway City Iskandar Puteri (SCIP), lodged the programme with the Securities Commission of Malaysia.
The MTN allows the company to issue bonds up to RM2 billion over time, while letting it issue “green” or sustainability-linked bonds following international standards.
Alliance Bank Malaysia is the principal adviser, lead arranger, lead manager and facility agent for the programme. The programme itself is unrated, but individual bond issuances might get ratings.
Funds raised will be used for development costs, working capital and other corporate needs.
SCIP covers 2,000 acres and will include logistics, education, hospitality, retail, commercial and residential areas. The project is valued at over RM30 billion and is expected to take 20 to 30 years to finish.
The township has two main areas, Riverside and Capital, and is the only green-certified township in Johor with a Provisional Silver rating from the Green Building Index.
In August 2023, Sunway acquired the remaining 40% stake in SIDSB from Iskandar Assets Sdn Bhd, gaining full control for RM85 million. This move fits Sunway’s plan to make Sunway City Iskandar Puteri its next flagship township.
Shares in Sunway closed up two sen or 0.38% at RM5.31 on Friday for a market capitalisation of RM33.3 billion.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
