KUALA LUMPUR (Feb 6): WCT Holdings Bhd has announced plans to establish a sukuk wakalah programme of up to RM5 billion, aimed at supporting working capital requirements and refinancing existing borrowings.
In a filing to Bursa Malaysia, the construction and property group confirmed that the required documentation has been submitted to the Securities Commission Malaysia. The programme will have a perpetual tenure structure, with each sukuk issuance carrying a maturity of more than one year, to be determined at the point of issuance. The framework also allows WCT to issue sustainability sukuk or sustainability-linked sukuk, reflecting the growing role of ESG-focused financing in the construction and real estate sectors.
MARC Ratings Bhd has assigned preliminary ratings of A+IS and A-IS to the programme, both carrying a positive outlook, indicating confidence in the group’s financial position and prospects.
According to the company, funds raised from the programme may be used for capital expenditure, investments, general corporate purposes, working capital, and the refinancing of both Shariah-compliant and conventional debt, as well as costs related to the programme itself. AmInvestment Bank Bhd and Maybank Investment Bank Bhd have been appointed as joint principal advisers, arrangers, lead managers, and Shariah advisers.
As of end-September 2025, WCT reported cash and bank balances of approximately RM560.6 million. This compares with short-term borrowings of about RM1.76 billion and long-term debt of roughly RM650.9 million, underscoring the importance of refinancing initiatives to manage gearing and liquidity.
The group’s outstanding construction order book stood at RM2.32 billion, while its tender pipeline exceeded RM11 billion, consisting mainly of civil engineering and infrastructure projects in Malaysia and overseas markets.
Market data indicates that WCT’s net gearing ratio is around 61.7%, broadly comparable to Gamuda Bhd but higher than IJM Corp Bhd. Several other listed construction players, including Sunway Construction Group, Kerjaya Prospek Group, and Binastra Corp, currently maintain net cash positions, reflecting differing capital structures across the sector.
At midday trading on Friday, WCT shares were priced at 57 sen, down one sen, giving the company a market capitalisation of about RM889 million. The stock has declined by roughly one-third over the past 12 months.
From a broader market perspective, access to financing remains a key factor supporting large-scale infrastructure and property development across the Klang Valley. Continued investment activity plays an important role in sustaining demand for commercial property in KL, as well as supporting expansion in office space in Bukit Jalil, industrial land in Selangor, factory developments in Puchong, and industrial property in the Subang area, where infrastructure connectivity and construction activity directly influence investor and occupier confidence.
Malaysia