1. INTRODUCTION

The Board of Directors of Sunway is pleased to announce that Sunway Treasury Sukuk Sdn Bhd (formerly known as Fantastic Prolink Sdn Bhd) (the “Issuer”), a wholly-owned subsidiary of Sunway Treasury Sdn Bhd which in turn is a wholly-owned subsidiary of Sunway,  has received authorisation from the Securities Commission Malaysia (“SC”) to establish an Islamic commercial paper/medium term note programme for the issuance of Islamic commercial papers (“ICPs”) and/or Islamic medium term notes (“IMTNs”) under the Shariah principle of Mudharabah (the ICPs and the IMTNs are collectively referred to as the “Sukuk Mudharabah”) of up to RM2.0 billion in nominal value (“Sukuk Programme”) via SC’s letter dated 21 August 2014.

The Issuer is a special purpose vehicle set up for the purpose of conducting treasury and financing operations to its related companies.

Kenanga Investment Bank Berhad has been mandated by the Issuer as the sole Principal Adviser/ Lead Arranger/ Lead Manager/ Facility Agent in respect of the Sukuk Programme.

2. DETAILS OF THE SUKUK PROGRAMME

The Sukuk Programme shall have a tenure of up to seven (7) years from the date of the first issuance of the Sukuk Mudharabah under the Sukuk Programme. The ICPs may be issued with a tenure of one (1) month, two (2) months, three (3) months, six (6) months, nine (9) months or twelve (12) months as the Issuer may select whereas the IMTNs can have a tenure of more than one (1) year and up to seven (7) years, as the Issuer may select, provided always that no Sukuk Mudharabah shall have a maturity date beyond the tenure of the Sukuk Programme.

The first issuance of the Sukuk Mudharabah under the Sukuk Programme shall be made within two (2) years from the date of the written authorisation by the SC subject to the conditions precedent for the Sukuk Programme being fulfilled. The Sukuk Programme will be secured by an irrevocable and unconditional Al-Kafalah Guarantee by Sunway.

The ICPs may be issued via competitive tender by the tender panel members or direct placement on a best effort basis without prospectus at the option of the Issuer while the IMTNs may be issued via book building on a best effort basis or direct placement or on a bought deal basis, without prospectus.

RAM Rating Services Berhad has assigned a preliminary rating of P1(s) for the ICPs and A2(s) for the IMTNs.

3.   UTILISATION OF THE PROCEEDS

The proceeds raised from the issuance of the Sukuk Mudharabah shall be utilised for the following purposes:

a. to utilise RM30,000 to fund the Trustee’s Reimbursement Account as required under the SC’s Trust Deed Guidelines;

b. to finance the investment activities, capital expenditure, working capital requirements and/or other general corporate purposes (including but not
    limited to future operating expenses and financing expenses i.e. the fees and expenses relating to the Sukuk Programme) of the Issuer and/or Sunway Group; and/or

c. to repay future borrowings undertaken by the Issuer and/or Sunway Group.

“Sunway Group” shall refer to Sunway and its direct and indirect subsidiaries and including jointly controlled entities and associate companies of Sunway.

In any case, all utilisation of funds from the issuance of the Sukuk Mudharabah shall be for Shariah-compliant purposes only including the manner in which the funds are to be channelled to the companies within the Sunway Group by the Issuer.

This announcement is dated 22 August 2014.