MR D.I.Y. Group (M) Berhad is looking to tap into the Islamic capital markets by establishing a RM5 billion Sukuk Wakalah programme aimed at supporting its expansion plans and refinancing existing debt. The home improvement retail chain has lodged the required documents with the Securities Commission Malaysia for approval.
The proposed programme will be structured under the Shariah principle of Wakalah Bi Al-Istithmar and will consist of two separate financing components with a combined aggregate limit of RM5 billion. This move is expected to provide the company with greater financial flexibility as it continues to grow its retail network and strengthen its financial position.
The first component is the Islamic Medium Term Notes (IMTN) programme, which will be perpetual in nature, with each issuance carrying a minimum tenure of at least one year. The second component is the Islamic Commercial Papers (ICP) programme, which will run for seven years and has a sub-limit of RM1 billion. The ICP will cater to shorter-term funding needs, with maturities ranging from one to twelve months.
Through this sukuk programme, the retailer aims to secure funding for business expansion initiatives while also refinancing part of its existing borrowings. The company expects to carry out its first issuance within 90 business days, subject to regulatory approvals and market conditions.