SkyWorld has issued
Malaysia’s first sukuk which monetises
progress billings, securitising future payments received from
the sale of yet-to-be completed units in a mixed development
project located in Kuala Lumpur.
The MYR1 billion ($250 million) Islamic
bond, issued in December, will be used to fund the
property developer’s ongoing projects. It was
structured using MYR600 million Islamic medium term notes under
a sukuk musharakah programme and MYR400 million notes
under a sukuk murabahah programme.
The transaction has been structured
to mitigate the construction and liquidity risks associated
with real estate development projects by placing progress
NewParadigm partner Charanjeev Singh, who
advised on the issuance, said that the structure provides more
efficient project management cash flows.
"The primary objective of this programme is to monetise
progress billings straight away allowing for more efficiently
managed project development cash flows," he said. "The
financial programme is structured on...