KUALA LUMPUR: DRB-Hicom Bhd said it had made a lodgement with the Securities Commission Malaysia for the establishment of a 30-year Islamic medium-term note programme of up to RM3.5 billion in nominal value.

“The sukuk wakalah programme has been assigned a preliminary rating of A+IS with a positive outlook by the Malaysian Rating Corp Bhd.

“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 the liquidity position,” said the group.

DRB-Hicom said the programme’s proceeds will be used to refinance the group’s existing borrowings, 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 a financing exercise to take advantage of the current favourable interest rate environment. DRB-Hicom’s share price rose one sen or 0.4% to RM2.48 yesterday, with a market capitalisation of RM4.79 billion.