LBS Bina tapped the Islamic capital markets with a MYR400 million senior unsecured Asean social sustainable and responsible investment (SRI) sukuk wakala, the second draw-down under its MYR750 million programme.
The seven-year notes carry a 4.81% periodic distribution rate and mature in January 2032. Proceeds are allocated for affordable-housing projects, aligning the issuance with LBS’s Sustainability Financing Framework and reinforcing its social-finance credentials.
The tranche also marks LBS’s first unsecured sukuk and the longest tenor it has achieved to date, signalling the developer’s growing credit stature.
The transaction attracted strong demand, with a final order book of approximately MYR2.1 billion and an oversubscription rate of 5.27x. Demand was driven primarily by institutional investors, underscoring market confidence in LBS’s track record, strategic direction and governance, as well as continuing liquidity for social and SRI sukuk linked to affordable housing.
The tranche marks LBS’s first unsecured sukuk and the longest tenor it has achieved to date, signalling the developer’s growing credit stature
The high-quality order book was anchored by domestic asset-management houses, complemented by banks, private-wealth platforms and corporates, underlining the depth of liquidity for labelled sukuk that blend social impact with competitive returns. The unsecured format and clear use-of-proceeds disclosure helped broaden participation and set a pricing benchmark for future social issuances from the sector.
HSBC Amanah acted as joint principal adviser, joint lead arranger, joint lead manager, sole Shariah adviser and sole sustainability structuring coordinator.
