Sime Darby prices RM2.43b Islamic bonds

KUALA LUMPUR, Jan 23 – Malaysia's Sime Darby Bhd , the world's largest palm oil company by planted area, today priced the first issuance of an US$800 million (RM2.43 billion) Islamic bond under a US$1.5 billion facility established earlier this month.

The first Islamic bond, or sukuk, will be issued in two tranches - a five-year US$400 million sukuk priced at 2.05 per cent per annum, and a 10-year US$400 million sukuk at 3.3 per cent.

Sime Darby said the bond, which comes in a multi-currency sukuk programme and will be listed on both the Malaysian and Singapore bourses, will finance capital expenditure, working capital requirements and general corporate purposes. – Reuters