Malayan Cement Berhad’s RM2 Billion Syndicated Shariah-Compliant Facility

Rahmat Lim & Partners acted for the financiers.

Maybank Investment Bank and United Overseas Bank (Malaysia) Bhd (UOB Malaysia) have been appointed as the underwriters and bookrunners, on an equal basis, for a RM2.0 billion Islamic facility granted to Malayan Cement Bhd (KLSE:MCEMENT). 

The facility will fund MCB’s acquisition of 10 companies in the cement and ready-mixed concrete sector in Malaysia from its parent company, YTL Cement Bhd.

The Islamic syndicated term financing facility is based on the Shariah principles of Commodity Murabahah.

MCB will use the Islamic facility to finance the cash consideration for the acquisition of the entire equity interest of the 10 companies and their respective subsidiaries (Acquiree Companies) from YTL Cement for a total consideration estimated at RM5.2 billion.

MCB (formerly known as Lafarge Malaysia Bhd) is a construction materials manufacturer in Malaysia. 

The Rahmat Lim & Partners’ team was led by Partner Syed Rashid bin Rahim Alsree (Picture). 

 

Involved fees earner: Syed Rashid bin Rahim Alsree – Rahmat Lim & Partners;

Law Firms: Rahmat Lim & Partners;

Clients: CIMB Islamic Bank Berhad; Maybank Investment Bank; OCBC Al-Amin Bank Berhad ; UOB Malaysia;

Sonia Carcano

Author: Sonia Carcano