KUALA LUMPUR: Tan Chong Motor Holdings Bhd has proposed to issue RM1.5 billion Islamic medium term notes in nominal value based on the Shariah principle of Murabahah (Sukuk Murabahah Programme).

       In a filing with Bursa Malaysia today, the company said the sukuk has a tenure of 30 years.

       "Proceeds from the issuance shall be utilised by Tan Chong and its subsidiaries for capital expenditure; working capital requirements; general corporate purposes; projects, investments and asset acquisitions that are being undertaken and/or to be undertaken in the future.

       "(It also includes the) refinance and/or repay financing facilities including existing conventional borrowings, and/or defray all fees and expenses in relation to the establishment of the Sukuk Murabahah Programme,” it said.

       Tan Chong said the proposed sukuk has been lodged with the Securities Commission (SC) in accordance with the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework. - Bernama