Sunway Proposes RM10 Billion Sukuk Programme to Support Expansion and Capital Management

Sunway Bhd has announced plans to establish a sukuk wakalah programme of up to RM10 billion, strengthening its financial flexibility to support ongoing operations, capital expenditure and refinancing needs across the group.

The proposed programme will be undertaken by Sunway Treasury Sdn Bhd, a wholly owned subsidiary of Sunway City Sdn Bhd, which sits under the Sunway Group. The necessary documents have been submitted to the Securities Commission Malaysia, according to a filing with Bursa Malaysia.

The sukuk facility is structured with a perpetual programme tenure, while individual issuances will have maturities exceeding one year, to be determined at the time of issuance. The initial tranche is expected to be backed by a corporate guarantee from Sunway Bhd, providing additional credit strength.

Proceeds raised from the sukuk programme will be allocated towards a broad range of purposes, including capital expenditure, investments, working capital, refinancing existing borrowings (both Shariah-compliant and conventional), as well as inter-company funding within the group. This financial flexibility supports Sunway’s diverse portfolio, which spans property development, construction, infrastructure and healthcare — including assets linked to commercial property in KL, office space in Bukit Jalil, and large-scale integrated developments across Selangor.

OCBC Al-Amin Bank Bhd has been appointed as principal adviser, lead arranger and lead manager for the programme, in addition to acting as sustainability structuring adviser and Shariah adviser.

The announcement follows a separate proposal last month by another group entity, Sunway Cochrane Sdn Bhd, which outlined a RM2 billion sukuk wakalah programme to fund working capital and future growth initiatives.

As at end-September 2025, Sunway reported RM6.52 billion in cash and bank balances, alongside short-term borrowings of RM6.34 billion and long-term debt amounting to RM6.08 billion, reflecting an active balance sheet management approach amid ongoing investments in Malaysia’s urban and industrial landscape, including industrial land in Selangor and strategically located mixed-use developments.

Sunway shares closed unchanged at RM5.58, giving the group a market capitalisation of approximately RM38 billion.