Al-Aqar Healthcare REIT has put a RM3 billion funding shelf in place, lodging Islamic financing programmes that can be used for new investments, refinancing and working capital.
The REIT's special-purpose vehicle, Al-Aqar Capital Sdn Bhd, lodged an Islamic notes programme of up to RM3 billion and an Islamic commercial papers programme of up to RM300 million with the Securities Commission Malaysia on Oct 8, according to Bursa filing details reported by The Edge Malaysia and The Star. The important limit is not RM3.3 billion. Both programmes sit under a combined outstanding cap of RM3 billion.
For a healthcare landlord, that gives the manager room to move before each individual issuance is priced. The notes programme has a perpetual tenure, while the commercial papers programme runs for seven years. The reports said the proceeds may be advanced to the REIT to finance investment activity, refinance current or future Islamic financing, cover working capital and general corporate needs, refinance maturing sukuk or ICP issuances, and pay programme expenses.
The structure also leaves open sustainability or sustainability-linked issuances, subject to the relevant rules and frameworks. That matters because healthcare REITs often carry long-life assets and recurring capital needs, but the market will still judge each drawdown on its price, purpose and balance-sheet effect.
Al-Aqar units closed at RM1.15 on Thursday, down one sen, valuing the REIT at about RM965.5 million, according to The Edge Malaysia. The unit price was reported to be down 10.2% year to date.
Sources: The Edge Malaysia, The Star.
