Velesto Energy Bhd is launching a sukuk wakalah programme with a total limit of up to RM1 billion to provide the group with flexible funding for investments, capital expenditure, working capital, and refinancing needs.
The programme, to be issued by Velesto’s wholly-owned subsidiary Sumber Ribu Sdn Bhd with Velesto as the corporate guarantor, consists of an Islamic commercial paper (ICP) programme and an Islamic medium-term note (IMTN) programme. Velesto has filed the necessary documents with the Securities Commission Malaysia under the lodge and launch framework for unlisted capital market products.
Under the structure, the ICPs will have a tenure of seven years from the date of first issuance, with individual notes issued for one to 12 months. The IMTN notes will have a perpetual tenure, with each issued for a minimum of one year.
Proceeds from the sukuk are earmarked for shariah-compliant purposes, including investments, capital expenditure, working capital, and refinancing of existing Islamic or conventional financing. Funds may also be used to refinance future sukuk under the programme and cover associated fees and costs.
RAM Rating Services Bhd has assigned the programme a short-term rating of P1(s) and a long-term rating of AA2(s), both with a stable outlook. Maybank Investment Bank Bhd is appointed as principal adviser, lead arranger, and lead manager, while Maybank Islamic Bhd serves as the shariah adviser.
As of December 31, 2025, Velesto had short-term borrowings of RM113.84 million and cash and bank balances of RM253.9 million. Shares in Velesto closed one sen higher at 34 sen on Monday, giving the group a market value of RM2.79 billion. Over the past year, the stock has surged 112.5%.
