We refer to the announcement dated 21 December 2021 in respect of the proposed establishment of an Islamic medium term notes (“Sukuk Murabahah”) programme of RM1,500.0 million in nominal value based on the Shariah principle of Murabahah (via Tawarruq arrangement) (“Sukuk Murabahah Programme”).

The Board of Tan Chong Motor Holdings Berhad (“TCMH” or the “Company”) is pleased to announce that the Company has established the Sukuk Murabahah Programme, and had on 16 March 2022, completed the inaugural issuance of RM300.0 million nominal value of Sukuk Murabahah (“Series 1 Sukuk Murabahah”) under the Sukuk Murabahah Programme. The Series 1 Sukuk Murabahah is rated A+IS  with a stable outlook by MARC Ratings Berhad.

The Series 1 Sukuk Murabahah comprises issuances as follows:

Proceeds from the issuance of the Series 1 Sukuk Murabahah shall be utilised by TCMH’s subsidiaries for working capital requirements.

RHB Investment Bank Berhad is the Principal Adviser and Lead Arranger for the Sukuk Murabahah Programme, as well as the Lead Manager for the first issuance under the Sukuk Murabahah Programme.

This announcement is dated 16 March 2022.