ISP Group of Companies, a property group specialising in the logistics warehouses and manufacturing hub (LWMH) as well as purpose-built workers accommodations (PBWA) has lodged its landmark RM2 bil asset-backed securitisation (ABS) Sukuk Wakalah Programme with the Securities Commission Malaysia (SC).
This pioneering initiative marks the first Sustainability Industrial ABS Sukuk Wakalah programme in Malaysia which itself is a new benchmark in sustainable Islamic financing in the industrial property sector for logistic warehouses, manufacturing hubs and workers accommodations.
This RM2 bil ABS Sukuk Wakalah programme will be established via Visionary Heritage Bhd (VHB), a special purpose vehicle incorporated in Malaysia to undertake the programme.
Proceeds from the ABS Sukuk Wakalah programme will support ISP Group’s strategic initiatives, including expanding its footprint in the LWMH and PBWA segments, driving innovation and technology adoption in these spaces as well as supporting community-focused programmes to uplift the well-being of the communities where the group serves.
“The launch of Malaysia’s first Sustainability Industrial ABS Sukuk Wakalah programme is a transformative milestone in our journey as a LWMH and PBWA specialist,” commented ISP Holding Sdn Bhd’s founder and group CEO Eric Ng.
“This programme underscores our dedication to ethical financing and sustainable development, providing us with a robust financial framework to pursue our strategic goals. It also enables us to connect with like-minded investors who share our vision of creating meaningful and lasting impact to our society at large.”
ISP Holding Sdn Bhd is the sponsor of the ABS Sukuk Wakalah programme with CIMB Investment Bank Bhd acting as the sole principal adviser, sole lead arranger, lead manager and sustainability structuring coordinator.
CIMB Islamic Bank Bhd acts as the programme’s shariah adviser advising on shariah-related matters while Messrs Lee Choon Wan & Co acts as the legal counsel to the sole principal adviser, sole lead arranger and lead manager by providing essential legal support to facilitate the programme’s implementation.
The ABS Sukuk Wakalah programme is a multi-currencies industrial asset-backed Islamic medium-term notes programme based on the shariah principle of Wakalah Bi Al-Istithmar.
It provides flexibility for issuing rated or unrated Sukuk Wakalah as well as ASEAN Green, ASEAN Social, ASEAN Sustainability or Sustainable and Responsible Investment (SRI) Sukuk Wakalah while ahering to the SC’s guidelines.
Structured with perpetual programme tenure, the programme allows issuances during the tenure of the programme subject to fulfilment of all the relevant conditions precedent.
An option to upsize the programme limit is also embedded in the terms of the programme which will allow the programme limit of RM2 bil to be increased should the need arises.
The first issuance under the Programme is expected to be labelled as the Asean Green Sukuk Wakalah.
It is expected to be backed by high-value industrial property located in Iskandar Puteri, Johor which is strategically positioned near major roads and surrounded by other industrial zones, including Nusa Cemerlang Industrial Park, Nusajaya Techpark and Southern Industrial & Logistics Clusters (SILC).
The property comprises seven factory units which are designed for flexibility with the ability to fence off individual blocks for separate tenants which the ISP Group has effectively split into six blocks.
It is fully tenanted by multiple tenants, including prominent Chinese companies and multinational corporations (MNCs), thus ensuring diversified income streams and risk mitigation.
With a potential valuation of approximately RM110 mil, this property represents a prime investment opportunity underpinned by robust fundamentals and a strategic location in a growing industrial hub.
The programme launch follows ISP Group’s recent acquisition of RM188.5 mil worth of strategic industrial assets comprising a re-development site and a brownfield site in Johor along with two brownfield sites in Selangor.
Following the acquisition, ISP’s portfolio now includes eight LWMH assets with a total gross floor area of 2.3 million sq ft. – Dec 21, 2024
