Velesto Energy Berhad has proposed establishing a sukuk wakalah programme with a combined limit of up to RM1 billion to enhance its funding flexibility. The offshore drilling services provider said the programme will support the group’s future investments, capital expenditure, working capital requirements, and refinancing activities.
According to a filing with Bursa Malaysia, the sukuk programme will consist of two components: an Islamic Commercial Paper (ICP) programme and an Islamic Medium-Term Note (IMTN) programme. The sukuk will be issued by the company’s wholly owned subsidiary, Sumber Ribu Sdn Bhd, while Velesto will act as the corporate guarantor.
The company said the relevant documents for the programme have been submitted to the Securities Commission Malaysia under the lodge and launch framework for unlisted capital market products, which allows companies to access the Islamic capital market more efficiently once the required documentation is filed.
Under the proposed structure, the ICP programme will have a tenure of seven years from the date of the first issuance, with individual papers issued for periods ranging from one month to 12 months. Meanwhile, the IMTN programme will carry a perpetual tenure, with notes issued for a minimum duration of one year from the date of issuance.
Proceeds raised through the sukuk may be used for Shariah-compliant purposes, including investments, capital expenditure, and working capital needs. The funds may also be used to refinance existing Islamic financing or conventional borrowings, as well as future financing or sukuk issued under the programme, in addition to covering related fees and expenses.
The programme has received ratings from RAM Rating Services Bhd, which assigned it a short-term rating of P1(s) and a long-term rating of AA2(s), both with a stable outlook.
Maybank Investment Bank Bhd has been appointed as the principal adviser, lead arranger, and lead manager for the sukuk programme, while Maybank Islamic Bhd will act as the Shariah adviser.
As of December 31, 2025, Velesto reported short-term borrowings of RM113.84 million and cash and bank balances of RM253.9 million, based on its latest financial statements. The company’s shares closed one sen higher at 34 sen, giving the group a market capitalisation of about RM2.79 billion, with the stock gaining 112.5% over the past year.