SD Guthrie Issues Malaysia's Largest Sustainability-linked Sukuk of RM2.1 billion

• Overwhelming market interest with peak orderbook twice the initial issuance size
   

Petaling Jaya, 10 November 2025 – SD Guthrie Berhad's (Guthrie or the Group) RM2.1 billion sustainability-linked sukuk was mopped up by an enthusiastic market, with its RM700 million 10-year sukuk priced at 3.80% and RM1.4 billion 15-year sukuk at 3.97%.

The issuance was successfully priced following a book-building exercise on 27 October 2025, attracting overwhelming investor interest with the peak orderbook reaching twice the initial issuance size of RM1.5 billion. With such strong investor interest, the deal was upsized to RM2.1 billion to cater to the strong market demand and enable wider participation – making Guthrie’s maiden Sustainability-linked sukuk the plantation industry’s largest Malaysian Ringgit issuance, and also Malaysia’s largest Sustainability-linked sukuk issuance to-date.

“The success of this exercise underscores investors’ trust and confidence in Guthrie's management team and the strategies in place to ensure responsible and sustainable growth,” said Datuk Mohamad Helmy Othman Basha, Guthrie's Group Managing Director. "We had expected healthy interest in our sukuk, but this level of support in a market that has recently seen several large issuances, is indeed encouraging.”  

The issuance is part of the Group’s RM5.0 billion Islamic notes issuance programme which was lodged with the Securities Commission Malaysia (SC) on 19 September 2025.The funds raised will cater for the Group’s near term funding requirements which includes the redemption of the perpetual sukuk in March 2026 currently with an interest rate of 5.65% resulting in significant annual interest savings to the Group of approximately RM42 million.

The sukuk has specific Sustainability Performance Targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 30% across Guthrie's global plantation upstream operations, as well as to maintain 100% Roundtable on Sustainable Palm Oil (RSPO) certification. These targets align with Guthrie’s inaugural Sustainable Finance Framework, which has been assigned a “Gold” Impact Assessment by MARC Solutions Sdn Bhd.

Guthrie produces 2.16 million metric tonnes of palm oil annually, from its 65 mills and 234 estates in Malaysia, Indonesia, Papua New Guinea and Solomon Islands. All Guthrie's mills are certified by the RSPO. Recently, Guthrie secured the top position in the annual SPOTT palm oil assessment, achieving an exceptional score of 97.5%. The remarkable assessment marks a significant leap forward in Guthrie’s sustainability journey, reflecting years of dedicated effort, transparency, and commitment to responsible palm oil production.

The Company recently announced its financial results for the third quarter ended 30 September 2025 (3Q FY2025), recording a net profit of RM935 million bringing its nine-month period (9M FY2025) net profit to RM2.01 billion, a commendable 44% year-on-year increase from 9M FY2024. The results in 3Q FY2025 include promising earnings from its Industrial Development segment which registered maiden gains as profits begin to materialise in the new segment announced last year.

Guthrie is a constituent of the FTSE4Good Bursa Malaysia Index, which recognises companies with strong Environmental, Social, and Governance (ESG) practices. The Company holds ratings of AAA (Stable) from Malaysian Rating Corporation Berhad (MARC), Baa2 (Stable) from Moody’s, and BBB (Stable) from Fitch. This issuance was made possible through the support of CIMB Investment Bank Berhad, acting as Principal Adviser, Lead Arranger, Lead Manager, as well as Shariah Adviser.


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