KUALA LUMPUR (Nov 4): DRB-Hicom Bhd said it has made a lodgement with the Securities Commission Malaysia (SC) for the establishment of an Islamic medium term notes programme of up to RM3.5 billion in nominal value (sukuk wakalah programme).

"The sukuk wakalah programme has been assigned a preliminary rating of A+IS with a positive outlook by Malaysian Rating Corp Bhd (MARC).

"This outlook revision to positive considers DRB-Hicom's improved consolidated credit profile through streamlining businesses by divesting investments and non-core assets and in improving operating margins and strengthening liquidity position," said the group.

DRB-Hicom said the proceeds from the programme will be used to refinance the existing borrowings of the group, for capital expenditure and working capital requirements and to pay all fees and expenses in connection with the sukuk wakalah programme.

It said the group is embarking on the financing exercise to take advantage of the current favourable interest rate environment.

DRB-Hicom shares rose one sen or 0.4% to close at RM2.48, giving a market capitalisation of RM4.79 billion.