SD Guthrie Bhd said it has issued its maiden sustainability-linked sukuk of RM2.1 billion, Malaysia’s largest to date.
Part of SD Guthrie’s RM5 billion Islamic notes programme, the sukuk will fund the group’s short-term needs, including redeeming a perpetual sukuk in March 2026 with a 5.65% interest rate, the group said in a statement Monday (Nov 10).
The redemption will result in annual interest savings of RM42 million, the group noted.
The sukuk comprises a RM700 million 10-year sukuk tranche priced at 3.8% and another RM1.4 billion 15-year sukuk at 3.97%, SD Guthrie said.
Strong investor demand, with orders twice the initial RM1.5 billion target, led to the upsized issuance.
The sukuk aims to reduce Guthrie’s direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions by 30% and maintain 100% Roundtable on Sustainable Palm Oil (RSPO) certification, in line with its “Gold”-rated Sustainable Finance Framework.
Guthrie produces 2.16 million tonnes of palm oil annually from 65 mills and 234 estates across Malaysia, Indonesia, Papua New Guinea and the Solomon Islands, all RSPO-certified.
Shares in SD Guthrie stood 10 sen or 1.85% higher at RM5.50, valuing the group at RM38.04 billion.
SD GUTHRIE ISSUES RM2.1B SUSTAINAbility-LINKED SUKUK
SD Guthrie Bhd said it has issued its maiden sustainability-linked sukuk of RM2.1 billion, Malaysia’s largest to date.
Part of SD Guthrie’s RM5 billion Islamic notes programme, the sukuk will fund the group’s short-term needs, including redeeming a perpetual sukuk in March 2026 with a 5.65% interest rate, the group said in a statement Monday (Nov 10).
The redemption will result in annual interest savings of RM42 million, the group noted.
The sukuk comprises a RM700 million 10-year sukuk tranche priced at 3.8% and another RM1.4 billion 15-year sukuk at 3.97%, SD Guthrie said.
Strong investor demand, with orders twice the initial RM1.5 billion target, led to the upsized issuance.
The sukuk aims to reduce Guthrie’s direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions by 30% and maintain 100% Roundtable on Sustainable Palm Oil (RSPO) certification, in line with its “Gold”-rated Sustainable Finance Framework.
Guthrie produces 2.16 million tonnes of palm oil annually from 65 mills and 234 estates across Malaysia, Indonesia, Papua New Guinea and the Solomon Islands, all RSPO-certified.
Shares in SD Guthrie stood 10 sen or 1.85% higher at RM5.50, valuing the group at RM38.04 billion.