Malaysia's UEM Land to raise $657 mln with Islamic bonds
KUALA LUMPUR Dec 3 (Reuters) - The property developer arm of Malaysia's sovereign fund Khazanah Nasional Bhd will issue Islamic bonds worth up to 2 billion ringgit ($657.95 million) to fund working capital, repay debts and redeem its convertible preference shares.
The Islamic bonds are UEM Land Holdings Bhd's first debt issue, and could go towards the development of its projects in Nusajaya, a new economic district to the south of the capital, Kuala Lumpur.
The Malaysian Rating Agency Corporation Bhd (MARC) issued a preliminary rating of 'stable' due to UEM Land's status as a government-owned entity.
UEM Land had 1.9 billion ringgit in unbilled sales as of September. It has teamed with Singapore-based Ascendas to develop the 3.7-billion-ringgit industrial park in Nusajaya. ($1 = 3.0397 Malaysian ringgits) (Reporting by Al-Zaquan Amer Hamzah; Editing by Louise Heavens)