Glomac celebrates launch of Sukuk Wakalah Programme in collaboration with Maybank

SHAH ALAM – Glomac Berhad (Glomac) recently established an Islamic medium-term notes programme of up to RM3.0 billion in nominal value based on the Shariah principle of Wakalah Bi Al-Istithmar (“Sukuk Wakalah Programme”).

Maybank Investment Bank Berhad has been appointed as the Sole Principal Adviser, Sole Lead Arranger, and Sole Lead Manager, while Maybank Islamic Berhad will serve as the Shariah Adviser for Glomac Berhad’s Sukuk Wakalah Programme.

The programme forms a crucial part of Glomac’s long-term financing strategy, with proceeds from the sukuk issuances earmarked for land acquisitions, capital expenditure, and working capital.

According to Glomac Chief Executive Officer, Datuk Seri FD Iskandar Tan Sri FD Mansor, who is also their Managing Director, the RM3 billion Sukuk Wakalah Programme would enhance the Group's financial reserves and allow for further land banking opportunities.

He also said that it could help optimise some of Glomac's liabilities, which bear high interest rates.

"It gives access to capital whenever there is a need for it and is a strategic move by Glomac to be in a position where we have the capacity to undertake opportunities when they come by. This initiative paves our way for enhanced financial stability and growth," he added.

He said that as the issuer, he was looking forward to the strategic partnership with Maybank since the initiative could help propel Glomac’s credibility and market positioning as one of the preferred developers in Malaysia.

Meanwhile, Maybank Investment Bank Berhad CEO Michael Oh-Lau said that the Sukuk Wakalah Programme was bespoke and dynamic, giving Glomac maximum flexibility to issue either rated or unrated Sukuk with the option for a sustainable format to meet Glomac’s present and future funding needs in tandem with its growth trajectory.

"Maybank is honoured to play a significant role in Glomac’s maiden foray into the debt capital market by providing seamless, holistic solutions, leveraging our strengths in global banking, capital markets, and Islamic Finance," Michael shared.

As part of Glomac's long-term strategy, it is exploring opportunities to diversify into areas that align with its core business in property development, property investments, and the construction sector, including green energy initiatives.

With a robust portfolio of strategically located land banks with an estimated gross development value (GDV) of around RM7 billion, the Group is positioned to spearhead continuous development in the years ahead.

The Greater Kuala Lumpur-centric and Johor markets will be emphasised to provide affordable mid-market residential townships and developments, where it has established a strong and well-recognised track record as a developer.