Ahead of the curve A Malaysian company has
issued the first sukuk backed by future payments made on real
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
The transaction has been structured to mitigate the
construction and liquidity risks associated with real estate
development projects by placing progress billings upfront.
Charanjeev Singh, a partner at corporate finance advisory
NewParadigm, who advised on the issuance, said that the
structure provides more efficient project management cash
"The primary objective of this programme...