Proton concludes RM700 million sukuk issuance – oversubscribed by 4x, proceeds to finance expansion

Proton concludes RM700 million sukuk issuance – oversubscribed by 4x, proceeds to finance expansion

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.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • newme on Jul 13, 2022 at 3:44 pm

    Sukuk what? Didn’t they get money from Geely

    Like or Dislike: Thumb up 0 Thumb down 3
    • Jeremy on Jul 14, 2022 at 12:11 am

      Bodoh what? Haven’t you heard of cofinancing? All selfrespected companies raises share offerings or whatnot to finance business expansion while at same time giving stakeholders profits upon maturity. This is a win-win for both, but we know yr a poorfag who are jealous that others have invested wisely.

      Like or Dislike: Thumb up 4 Thumb down 0
      • Hehehe on Jul 14, 2022 at 5:31 pm

        Chill dude. He’s just asking.

        Like or Dislike: Thumb up 1 Thumb down 1
        • Casual reader on Jul 17, 2022 at 6:48 pm

          Elon musk despite being a billionaire still looked to VC to fund tesla, so whats so strange about going for external funding

          Like or Dislike: Thumb up 0 Thumb down 0
      • He hates this because Proton did a Govt’s bailout, but I don’t think Proton will fail this time. They are more careful than before, and I hope they are …

        Like or Dislike: Thumb up 0 Thumb down 0
  • ROTI CANAI on Jul 13, 2022 at 10:32 pm

    rofl

    Like or Dislike: Thumb up 0 Thumb down 0
 

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