Malaysia's LBS Bina redeems portion of tranche 2 sukuk due 2015

By Marisa Wong

Madison, Wis., June 28 - LBS Bina Group Bhd. said it redeemed and canceled RM 10 million of its tranche 2 sukuk on Friday.

The securities due July 23, 2015 were issued under the company's RM 135 million Islamic commercial paper/Islamic medium-term note program guaranteed by Danajamin Nasional Bhd.

Previously, the company redeemed all RM 35 million of its tranche 1 sukuk due July 23, 2014. The company made partial redemptions of RM 15 million, RM 5 million and RM 15 million in October 2012, December 2012 and February, respectively.

The company had also redeemed all RM 20 million of its tranche 3 sukuk due July 17, 2013 in October 2012 and, before that, its RM 20 million tranche 4 sukuk due July 15, 2013 in August 2012.

The company said that the partial redemption of tranche 2 sukuk was 755 days ahead of the maturity date and contributed to a cost savings of RM 953,000.

LBS Bina's board of directors said that the early redemption was in the best interest of the group.

The investment holding company is based in Petaling Jaya, Selangor Darul Ehsan, Malaysia.

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