Sunway Proposes RM10 Billion Sukuk Programme to Strengthen Funding Flexibility and Support Long-Term Expansion

Kuala Lumpur — Sunway Bhd has unveiled plans to establish a sukuk wakalah programme of up to RM10 billion, aimed at enhancing funding flexibility to support working capital needs, capital expenditure, and refinancing activities 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 umbrella. The company has submitted the relevant documentation to the Securities Commission Malaysia, according to an exchange filing.

Flexible Financing Structure with Perpetual Programme Tenure

The sukuk programme is structured with a perpetual tenure, allowing Sunway to issue multiple tranches over time. Each individual issuance will have a tenure exceeding one year, with specific terms to be determined closer to each launch.

Notably, the initial sukuk issuance will be backed by a corporate guarantee from Sunway Bhd, providing additional assurance to investors.

Funds raised will be allocated toward a broad range of purposes, including:

• Capital and development expenditure

• Strategic investments

• General corporate and working capital requirements

• Refinancing of existing shariah-compliant and conventional borrowings

• Payment of programme-related costs

• Inter-company financing within the Sunway Group

This diversified use of proceeds supports Sunway’s ongoing exposure to commercial property in KL, office space in Bukit Jalil, and integrated developments across Selangor, where access to flexible funding remains critical.

Strategic Relevance to Property and Industrial Markets

Sunway’s financing initiative aligns with its continued involvement in mixed-use, office, and industrial developments, particularly in growth corridors linked to industrial land in Selangor, factory developments in Puchong, and industrial property in the Subang area. Strong liquidity positions allow large developers to respond more efficiently to demand shifts in logistics, business parks, and office assets within the Klang Valley.

The programme also enhances Sunway’s ability to manage balance sheet efficiency while sustaining long-term development pipelines in prime urban and suburban locations.

Advisory and Recent Financing Activity

HSBC Amanah Malaysia Bhd has been appointed as principal adviser, lead arranger, lead manager, and shariah adviser for the sukuk programme.

In December, Sunway further demonstrated its appetite for Islamic financing when another subsidiary, Sunway Cochrane Sdn Bhd, announced a separate RM2 billion sukuk wakalah programme to fund working capital and future expansion plans.

Current Financial Position

As at end-September 2025, Sunway reported:

• Cash and bank balances: RM6.52 billion

• Short-term borrowings: RM6.34 billion

• Long-term borrowings: RM6.08 billion

The proposed sukuk programme provides additional financial headroom to support Sunway’s diversified businesses, including its exposure to commercial real estate, industrial assets, and office developments in Kuala Lumpur and Selangor.