Pelaburan Hartanah Berhad (PHB) has successfully issued its inaugural RM1.5 billion Sukuk Murabahah, which includes RM1.4 billion in Sustainability Sukuk Murabahah and RM100 million in Sukuk Murabahah. The issuance is part of PHB's AAA-rated RM5 billion Sukuk Murabahah Programmes.

The Sukuk Murabahah was offered with tenures of one, three, five, and seven years through private placement and book-building exercises. Investor demand was strong, with the issuance oversubscribed by 2.2 times and a closing order book of approximately RM3 billion. This led to tight profit rate spreads between 3.49% and 3.91% per annum. The Sustainability Sukuk Murabahah attracted a diverse group of investors, including pension funds, insurance companies, asset managers, and financial institutions.

PHB's Sukuk Murabahah Programmes consist of Islamic Medium Term Notes (IMTN) and Islamic Commercial Papers (ICP), with a combined limit of up to RM5 billion. These programmes are structured on the Shariah-compliant Tawarruq-based Murabahah principle, allowing flexibility in issuing Sustainability Sukuk Murabahah tranches.

Under PHB's Sustainability Sukuk Framework, proceeds from the sustainability issuances will be used to refinance projects that contribute to climate and environmental benefits or generate measurable social improvements. This initiative underscores PHB's commitment to promoting green and sustainable real estate while creating lasting value for communities and the environment.

The Sukuk Murabahah Programmes have been rated AAA/Stable and P1 by RAM Ratings, reflecting PHB's strong financial position and strategic role in promoting Bumiputera ownership in Malaysia's commercial real estate sector, in line with its government mandate. Additionally, the programmes received a Gold Sustainable Finance Rating from RAM Sustainability, recognizing the environmental and social benefits of the projects financed.

Affin Hwang Investment Bank Berhad served as the principal adviser, lead arranger, and Sustainability Sukuk Advisor for the Sukuk Murabahah Programmes. They were also one of the joint lead managers for the transaction, along with AmInvestment Bank Berhad, Bank Islam Malaysia Berhad, and Bank Muamalat Malaysia Berhad.

The signing ceremony for the RM5 billion Sukuk Murabahah Programmes took place yesterday. PHB was represented by its Group Managing Director/Chief Executive Officer, Mohamad Damshal Awang Damit, and Affin Hwang Investment Bank was represented by its Chief Executive Officer, Nurjesmi Mohd Nashir.

"The issuance of the RM5 billion Sukuk Murabahah Programmes is crucial for PHB's long-term sustainable growth and reinforces our commitment to delivering value while adhering to Shariah principles," said Mohamad Damshal. "The strong demand for this issuance reflects investor confidence in PHB's financial strength and strategic role in fulfilling the government's mandate."

The Sukuk Murabahah Programmes will provide essential capital for PHB to expand its Shariah-compliant investment portfolio, refinance existing borrowings, support future financing needs, and enhance Bumiputera ownership in prime commercial real estate through Amanah Hartanah Bumiputera (AHB).

PHB has also been awarded a AAA/Stable/P1 Corporate Credit Rating from RAM Ratings and a Gold3 Sustainability Rating from RAM Sustainability, highlighting the company's strong creditworthiness and outstanding sustainability performance in the property investment sector.