Zul Rafique & Partners’ Banking & Finance Practice Group, led by Partners, Loh Mei Mei and Jayden Chuah and assisted by Legal Associate, Wong Ke Ying were pleased to have acted as solicitors to Sumber Ribu Sdn Bhd, a wholly-owned subsidiary of Velesto Energy Berhad, in connection with the establishment of an Islamic commercial papers programme (“ICP Programme”) for the issuance of Islamic commercial papers (“ICP”) and an Islamic medium term notes programme (“IMTN Programme”) for the issuance of Islamic medium term notes (“IMTN”), with a combined aggregate limit of up to RM1.0 billion in nominal value and based on the Shariah principle of Wakalah Bi Al-Istithmar and guaranteed by Velesto Energy Berhad (“Corporate Guarantor”) (collectively, “Sukuk Wakalah Programmes”).
The Sukuk Wakalah Programmes provide Sumber Ribu Sdn Bhd with a flexible and diversified funding platform to support investments, capital expenditure, working capital requirements, refinancing of existing and future financings, as well as general corporate purposes.
The ICP Programme carries a tenure of seven (7) years from the date of first issuance and has been accorded a rating of P1(s) by RAM Ratings Services Berhad. The IMTN Programme has a perpetual tenure and has been accorded a rating of AA2(s) by RAM Ratings Services Berhad.
A notable feature of the Sukuk Wakalah Programmes is the flexibility afforded to Sumber Ribu Sdn Bhd to issue Sustainability Sukuk Wakalah and/or Sustainability-Linked Sukuk Wakalah in compliance with applicable sustainability and sustainability-linked frameworks. In addition, the Sukuk Wakalah Programmes have been structured with an upsizing feature, allowing for an increase in programme size subject to compliance with the relevant regulatory requirements.
We are grateful to Sumber Ribu Sdn Bhd for the opportunity to support this significant financing exercise and congratulate all parties involved on the successful establishment of the Sukuk Wakalah Programmes.
For more insight into this area of law, please contact our Partners in the Banking & Finance practice group:
Loh Mei Mei
Kung Suan Im
Ashela Ramaya
Celine Rangithan
Jayden Chuah
