Malaysian developer LBS Bina Group launched its debut rated deal under a RM750 million ($175 million) sukuk wakalah programme, issuing a RM200 million five-year ASEAN Social SRI sukuk wakalah aimed at financing affordable housing.
The transaction drew exceptional demand: the final order book topped RM1.27 billion, translating into a 6.4-times oversubscription that markedly exceeded expectations for a first-time rated borrower.
After three rounds of price tightening, the company fixed the coupon just above the lower boundary of guidance at five-year MGS + 141 basis points, giving investors a 5% profit rate and landing 39 basis points inside the widest initial price talk. This ability to compress pricing while maintaining a robust book underscores investors’ confidence in LBS despite broader real estate volatility.
HSBC Amanah Malaysia anchored the deal, acting as sole sustainability structuring coordinator and Shariah adviser as well as joint principal adviser, joint lead arranger and joint lead manager.
