Avaland's property projects are performing well, with several developments like Alira Subang Jaya achieving high take-up rates (over 90%). Their 2024 projects, including Casa Embun Phase 2 and Amika Residences, have been well-received, driving strong sales and contributing to a revenue increase of over 91% year-on-year

Avaland Berhad, a Malaysian property developer, has recently initiated significant funding efforts to support its ongoing and future projects.

Sukuk Programme Establishment:

Programme Details: In June 2024, Avaland established an Islamic Medium-Term Notes Programme (Sukuk Programme) with a total nominal value of up to RM1 billion. This programme is designed to finance and refinance eligible green and social projects, aligning with Avaland's commitment to sustainable development.
AVALAND

Sustainability Framework: Avaland has developed a Sustainability Sukuk Framework to govern the issuance under this programme. This framework ensures transparency and adherence to international standards, including the ASEAN Green Bond Standards and the Sustainable and Responsible Investment Sukuk Framework by the Securities Commission Malaysia.
AVALAND

Recent Sukuk Issuance:

Issuance Details: On August 7, 2024, Avaland issued a five-year Islamic Medium-Term Note worth RM300 million under its Sukuk Programme. This issuance carries an AA3/Stable rating from RAM Ratings, reflecting Avaland's strong creditworthiness.
ISLAMIC FINANCE NEWS

Use of Proceeds: The funds raised are earmarked for financing Avaland's ongoing and upcoming property development projects, particularly those with sustainable and green building features. This move underscores Avaland's dedication to integrating environmental considerations into its development projects.
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Analyst Insights:

Credit Rating: RAM Ratings assigned an AA3/Stable rating to Avaland's proposed Sukuk Programme, indicating a strong capacity to meet financial obligations. This rating reflects Avaland's established position in the property development sector and its prudent financial management.
RAM

Sustainability Commitment: Analysts have noted that Avaland's issuance of sustainability Sukuk reaffirms its commitment to sustainable development. The company's focus on green financing is expected to enhance its reputation and appeal among environmentally conscious investors and buyers.
YAHOO NEWS MALAYSIA

Avaland's strategic move towards green financing through the Sukuk Programme positions the company favorably in the evolving property development landscape, where sustainability is becoming increasingly pivotal.