PETALING JAYA, Sept 5 — QI Group of Companies has issued its RM100 million sukuk ijarah programme, with Bank Pembangunan Malaysia Bhd (BPMB) being the primary subscriber.

The group said the sukuk ijarah was issued via Silver Formula ABS Bhd, a special-purpose company set up to undertake the transaction.

It said that proceeds from the issuance would be used for the purchase of land and the construction of the 4.04-hectare Quest International University campus in Ipoh, Perak.

Executive chairman Datuk Seri Vijay Eswaran said investing in the university’s growth would go beyond constructing a prestigious institution, as it is also about cultivating the leaders of tomorrow.

"As I often emphasise, education serves as the bedrock upon which great legacies are constructed.

"Complementing its commitment to affordable education, the group’s scholarship programme has empowered thousands of deserving students since 2017, awarding millions of ringgit in scholarships,” he said in his speech at the signing ceremony between QI Group and BPMB on the sukuk arrangement here today.

Vijay said that this joint sukuk initiative would bring the university one step closer to realising its long-term vision of giving back to the communities in the northern states of Malaysia via affordable and high-quality education.

With the capital injection from the initiative, the university would be strategically positioned to address this growing demand and make a substantial contribution to the educational landscape in the region.

Meanwhile, speaking to the media after the ceremony, QI Group managing director Kuna Senathirajah said the construction of the new university is expected to commence in the second half of 2024 and to be completed within three years.

He said the overall cost for the whole campus, including the land, would range from RM120 million to RM150 million.

"The issuance of this sukuk (would serve) as the initial funding for the land acquisition and construction (activities).

"(As) there will be other further funding requirements, we will raise the money to complete the campus,” he said.

Meanwhile, BPMB group chief executive officer Roni Abdulwahab said the bank would ensure all its financing delivers social, economic and environmental impact via its measuring impact on national development (Mind) framework.

He said the framework would complement its credit assessment, and the development of the university’s new campus in Ipoh would allow the bank to foster impactful development that will increase accessibility to higher education to all levels of society, including the lower-income groups.

"Through the university, we fulfil our mission of providing equal opportunities for students while also generating meaningful employment prospects within the Gunung Lang region.

"This initiative serves to narrow the differences in development between different regions of the state. Most importantly, it could be the spark that ignites economic progress in Gunung Lang, extending beyond just tourism,” he added. — Bernama