RHB Research Institute is positive on Sime Darby’s proposed US$1.5bil (RM4.5bil) of multi-currency sukuk. It is maintaining a fair value of RM10.95 and an Outperform call.
It said on Monday the Sukuk programme would likely help to lower Sime’s debt rate, which currently stands at 4%-5% per annum. “We believe the sukuk would be used to fund its capex (the main bulk of which would likely be for its planting programme in Liberia) as well as to refinance some of its other debt,” it said………………………………………..Full Article: Source