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- As at June 30, 2025, S P Setia’s total borrowings stood at RM8.20 billion, comprising RM3.37 billion in secured borrowings and RM4.82 billion in unsecured borrowings, according to its latest quarterly report.
KUALA LUMPUR (Oct 28): S P Setia Bhd (KL:SPSETIA) has proposed to establish two Islamic note programmes — a RM3.5 billion sukuk wakalah programme and a RM500 million Islamic commercial paper (ICP) programme — to provide financing flexibility for its working capital, refinancing and expansion needs.
The property developer said it had on Monday (Oct 27) lodged the required information and documents with the Securities Commission Malaysia (SC) for the sukuk wakalah and ICP programmes, which have a combined limit of up to RM4 billion, under the SC’s Lodge and Launch Framework.
The sukuk wakalah programme allows for issuances of senior and perpetual Islamic medium-term notes, while the ICP programme permits the issuance of short-term ICPs with tenures of between one month and 12 months.
The sukuk wakalah will have a perpetual tenure, unless cancelled, while the ICP programme will have a seven-year tenure, it said in a Bursa Malaysia filing.
The proceeds from the sukuk wakalah and ICP issuances, S P Setia said, will be channelled towards shariah-compliant purposes, including working capital, refinancing of existing borrowings, capital expenditure, investments, and asset acquisitions, as well as to cover costs associated with setting up the programmes.
It added that the programmes will also enable the company to issue sustainability sukuk or sustainability ICP, aligned with the Sustainable and Responsible Investment Sukuk Framework, Asean sustainability bond standards, and other recognised sustainability principles.
The senior sukuk wakalah and perpetual sukuk wakalah programmes have received preliminary ratings of AAIS and A+IS respectively from MARC Ratings Bhd, while the ICP programme has been accorded a MARC-1IS rating.
HSBC Amanah Malaysia Bhd and Maybank Investment Bank Bhd are the joint principal advisers and joint sustainability structuring coordinators for the sukuk programmes, with CIMB Investment Bank Bhd, HSBC Amanah and Maybank Investment Bank acting as joint lead arrangers. HSBC Amanah and Maybank Islamic Bhd are the joint shariah advisers.
As at June 30, 2025, S P Setia’s total borrowings stood at RM8.20 billion, comprising RM3.37 billion in secured borrowings and RM4.82 billion in unsecured borrowings, according to its latest quarterly report.
Islamic financing made up the bulk of the group’s debt at RM5.29 billion, or about 65% of total borrowings, while conventional facilities accounted for RM2.91 billion, or 35%. The Islamic portion comprised RM1.67 billion in short-term borrowings and RM3.62 billion in long-term borrowings.
The group reported cash and bank balances of RM2.01 billion and short-term deposits of RM751 million, bringing total cash holdings to RM2.76 billion as at end-June 2025.
Its net gearing ratio stood at approximately 0.34 times, while its total equity base stood at RM15.87 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.
