KUALA LUMPUR:  KLCC Property Holdings Bhd (KLCCP) today said it will issue RM1.95 billion sukuk under its the RM5 billion Sukuk Wakalah programme, to fund its purchase  of a 40 per cent interest in Suria KLCC Sdn Bhd.

In a filing with Bursa Malaysia, KLCCP said this will be its first issuance under the Sukuk Wakalah programme.

Additionally, the proceeds from the issuance of Sukuk Wakalah under the Sukuk Wakalah programme will be used to finance working capital requirements, acquisitions, investments, capital expenditures and general corporate purposes of KLCCP and its subsidiaries.

It will also be used to refinance any existing borrowings/Shariah-compliant financings and/or future Shariah-compliant financings of KLCCP Group and pay all fees, cost and expenses relating to the Sukuk Wakalah programme.

The Sukuk Wakalah has a tenure ranging from three to five years, offering a periodic distribution rate between 3.73 per cent and 3.85 per cent per annum, it added.

Under the Sukuk Wakalah Programme, KLCCP would also have the flexibility to issue Sustainability Sukuk Wakalah and/or Sustainability-Linked Sukuk Wakalah.

The Sukuk Wakalah programme for the  KLCCP group does not include KLCC Real Estate Investment Trust.