Carmaker Proton via its subsidiary PONSB Capital Bhd has successfully concluded the issuance of the second tranche of its Islamic Medium-Term Note (IMTN) worth RM700 million under the Sukuk Wakalah programme. The IMTN was oversubscribed by almost four times, the company says.
Proton’s Islamic commercial papers have a combined limit of up to RM4 billion in nominal value, and is based on the Shariah principal of Wakalah Bi Al-Istithmar. This RM700 million second tranche follows the first tranche of RM500 million that was completed in December 2021.
“Proton is pleased to conclude the issuance of its second tranche of sukuk funds with the collaboration of CIMB Investment Bank and RHB Investment Bank as joint lead managers. The funds obtained will help to finance the company’s future expansion plans as well as working capital requirements,” said Proton CFO Wang Huaibing.
“We are determined to follow through on our growth strategy and in the coming years there are some exciting developments on the horizon. These range from new product launches to penetrating more export markets and entering the new energy vehicle segment. With a total fund size of RM4 billion, there is still a lot of opportunity for more investors to come on board and I am confident that Proton will reward their faith in us,” he added.
New energy vehicles is a China term used for electrified vehicles, so expect hybrids from Proton in the near future.
