Johor bahru: Johor Plantations Group Bhd (JPG) has announced the issuance of its Series 2 Sukuk Wakalah-Islamic Medium Term Notes Programme (IMTN), marking its inaugural Sustainability Sukuk Wakalah-IMTN, with a total nominal value of RM200 million.

According to BERNAMA News Agency, the 10-year sukuk, set to mature on August 15, 2035, offers a periodic distribution rate of 3.70 percent per annum. The statement from JPG highlights that the favorable rates obtained during this issuance indicate strong investor confidence in the company. The sukuk’s final oversubscription rate of 4.93 times during the bookbuilding process reflects substantial demand and underscores investor trust in JPG’s sustainability initiatives and operational performance.

JPG intends to use the proceeds from the sukuk issuance to finance Shariah-compliant capital expenditure for its Integrated Sustainable Palm Oil Complex (ISPOC), which qualifies as an eligible green project under the specified framework.

Maybank Investment Bank Bhd has been appointed as both the principal adviser and sustainability structuring adviser for the Sukuk Wakalah programmes. The joint lead arrangers for these programmes are CIMB Investment Bank Bhd and Maybank Investment Bank Bhd. Additionally, Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd, and Maybank Investment Bank Bhd are acting as joint lead managers for the programmes and the sukuk issuance.