Kuala lumpur: MR D.I.Y. Group (M) Bhd has successfully raised RM540 million through its first issuance under the RM5.0 billion Sukuk Wakalah Programmes, with the Islamic Medium-Term Notes (IMTN) tranche being oversubscribed by 5.6 times.

According to BERNAMA News Agency, the home improvement retailer announced that the programmes include RM525 million in IMTN and RM15 million in Islamic Commercial Papers (ICP). The proceeds from this issuance will be allocated to refinance existing borrowings, support working capital requirements, fund capital expenditure, and for general corporate purposes.

The IMTN and ICP have received initial long-term and short-term credit ratings of AA1/Stable and P1, respectively, from RAM Rating Services Bhd. These ratings indicate the company's strong capacity to meet its financial obligations, as they represent the second-highest long-term and the highest short-term credit ratings assigned by RAM Ratings.

The IMTN issuance attracted strong investor interest, with the order book reaching 6.5 times at initial price guidance. This allowed MR D.I.Y. to leverage the demand to close at a final price of 3.83 percent per annum for the seven-year tranche and 3.92 percent per annum for the 10-year tranche.

A wide range of investors, including statutory bodies, pension funds, asset managers, takaful and insurance companies, and financial institutions, participated in the deal. Adrian Ong, the chief executive officer, stated that this issuance marks a significant milestone as the company enters the Malaysian Islamic capital market for the first time, enhancing its capital structure and financial flexibility.

CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, and Maybank Investment Bank Bhd served as the joint lead managers for the Sukuk Wakalah issuance.