ZUL RAFIQUE & partners’ Banking & Finance team, Ashela Ramaya, Jayden Chuah Jer Yang, Farrah Yakin, and Nurishqa Aisya acted as the solicitors for AmInvestment Bank Berhad, OCBC Al-Amin Bank Berhad, and United Overseas Bank (Malaysia) Bhd as the Joint Lead Arrangers to a Sukuk programme of up to MYR500 million in nominal value under the Shariah principle of Murabahah (via a Tawarruq arrangement) by Swift Haulage Sdn Bhd (“Issuer”), one of the top three largest integrated logistics services providers in Malaysia.

The proceeds of the Sukuk will be utilised to amongst others, refinance the Swift Group’s existing banking facilities and future capital expansion purposes as well as diversify the Group’s source of funding to finance acquisitions related to its business.

The security structure contemplated the sharing of securities between the first tranche of Sukuk Murabahah of up to Ringgit Malaysia Three Hundred Million (MYR300,000,000.00) (“Tranche 1 Sukuk Murabahah”) and additional working capital facilities of up to Ringgit Malaysia Two Hundred Thirty-One Million (MYR231,000,000.00) granted or to be granted to Swift Haulage Sdn Bhd by AmBank Islamic Berhad, OCBC Al-Amin Bank Berhad and United Overseas Bank (Malaysia) Bhd (“Working Capital Facilities”). The shared securities to the Tranche 1 Sukuk Murabahah would rank ahead of the Working Capital Facilities in point of priority and security.

Each tranche issued under the Sukuk Murabahah Programme may or may not be secured. Tranche 1 Security Documents are ring-fenced to secure only the Tranche 1 Sukuk Murabahah. The Sukuk Murabahah Programme contemplates additional securities, covenants, and events of default to apply solely to subsequent issuances of the Sukuk Murabahah which will be agreed to before the date of issuance. This unique structure offers the Issuer greater flexibility to finance the Group’s future capital expenditure and acquisitions under the Sukuk Murabahah Programme.

For more insights into this area of law, please contact our Partners in Banking & Finance Practice Group:
Loh Mei Mei
Kung Suan Im
Ashela Ramaya
Chan Kwan Hoe
Celine Rangithan