Best Islamic real-estate deal – Asia: SP Setia’s RM1 billion triple-tranche senior unsecured sukuk wakala

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Best Islamic real-estate deal – Asia: SP Setia’s RM1 billion triple-tranche senior unsecured sukuk wakala



Issuer: SP Setia

Size: RM1 billion

Structure: Wakala bi al-istithmar

Tenor: Three, five, seven years

Banks: HSBC Amanah, Maybank Investment Bank, RHB Investment Bank (joint lead managers)

Date: June 2023

 


There are certain corporate blue-chip issuers in any market that will always attract strong demand from investors. In Malaysia, real-estate development company SP Setia is one of those borrowers, regardless of what it is looking to raise on the debt capital markets.

Year after year, the company is one of Malaysia’s most regular and high-profile domestic issuers, and especially most recently in sukuk, a market the developer accessed for the first time in 2021, issuing from its RM3 billion ($620 million) sukuk wakala programme.

The company returned to the domestic sukuk market in 2022, and again last year with what is its largest and best sukuk yet – a RM1 billion deal across three- (RM150 million), five- (RM450 million) and seven-year tranches (RM400 million).

The sukuk notched-up several firsts: the largest sukuk from the sector; the company’s largest orderbook; and the largest number of investors in the orderbook

Such was the level of demand – which topped RM2.9




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