Top Glove announces RM3b perpetual sukuk programme

KUALA LUMPUR (Jan 23): Top Glove Corp Bhd's wholly-owned subsidiary TG Excellence Bhd has lodged a RM3 billion perpetual sukuk programme with the Securities Commission Malaysia on Jan 22 to raise proceeds for refinancing purposes.

The sukuk, which is guided under the Shariah principle of Wakalah Bi-Al Istithmar, is guaranteed by Top Glove and has been assigned an AA-IS(cg) rating by the Malaysian Rating Corp Bhd (MARC), with the group's corporate credit rating being AA2.

Both the group's credit rating and the rating assigned to its new sukuk programme carry a stable outlook.

Top Glove said the proceeds are intended to be used to refinance existing financing or debt obligations, repay intercompany borrowings and finance working capital requirements, investments, acquisition, capital expenditure or its general corporate purposes.

"All utilisation of proceeds raised under the Sukuk Wakalah shall be Shariah-compliant," said the group.

CIMB Investment Bank Bhd — the sukuk programme's shariah adviser — and Hong Leong Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the programme.