The 226th Shariah Advisory Council of the Securities Commission Malaysia Meeting (13 November 2019)

Revised Resolution on Utilisation of Sukuk Proceeds for Refinancing of Outstanding Conventional Borrowings

The SAC had, at its 226th meeting held on 13 November 2019, resolved that the sukuk proceeds may be utilised to refinance
(wholly or partly) outstanding conventional borrowings provided that the outstanding conventional borrowings which were used for activities or purposes that are prohibited by Shariah is not more than 49% of the total outstanding conventional borrowings.
Notwithstanding the above, if a company that carries out Shariah non-compliant business activities is in the process of converting its business into a fully Shariah compliant business, the sukuk proceeds may be utilised to refinance (wholly or partly) its outstanding conventional borrowings.

This resolution is applicable to the issuer and the issuer’s group of companies and it shall supersede the Previous Utilisation of
Sukuk Proceeds for Refinancing Outstanding Conventional Borrowings Resolution.

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