The Star - QI Group launches RM100mil sukuk

PETALING JAYA, 5 September 2023

QI Group has launched a RM100mil Sukuk Ijarah Programme, with Bank Pembangunan Malaysia Bhd (BPMB) committing RM60mil, making it the primary subscriber to the Islamic bonds.

The Sukuk Ijarah is issued via Silver Formula ABS Bhd, a special-purpose company set up to undertake the transaction.

QI Group group managing director Kuna Senathirajah said the funds raised from the sukuk will be used to support growth and expansion of its tertiary education business.

He said the funds will be utilised to construct a campus for Quest International University (QIU), equipped with modern facilities to enhance the learning environment for students.

“The overall cost for the entire campus, including the land, is estimated to be between RM120mil and RM150mil,” he told a press conference in conjunction with the signing ceremony for the subscription of the sukuk.

He added that the sukuk represents the initial funding and there will be a requirement for further funding.

“We are currently operating at full capacity in our rented buildings in Ipoh. Therefore, to support the university’s growth, the group is planning to construct a campus,” he noted.

According to him, the group plans to commence construction in the second half of next year, with the campus expected to be completed by the second half of 2027.

Meanwhile, QIU chancellor Tun Arifin Zakaria said the university currently has nearly 2,000 students and it is experiencing significant growth in demand.

“As a growing university, I believe we can allocate space for at least 6,000 students in the future campus,” he said.

Although the university has students from 50 different countries, Arifin said 90% of them are from Perak itself.

BPMB group chief executive officer Roni Abdulwahab said the bank ensures all of its financing delivers social, economic and environmental impact through its Measuring Impact on National Development (MIND) framework.

“MIND complements our credit assessment and the development of QIU’s new campus in Ipoh provides an avenue for us to foster impactful development that will increase accessibility to higher education to all levels of society including the lower income group,” he said.

QI Group executive chairman Datuk Seri Vijay Eswaran expressed his vision for this transformative endeavour of the group’s tertiary education business.

“Investing in the growth of QIU goes beyond constructing a prestigious institution; it is about cultivating the leaders of tomorrow. As I often emphasised, education serves as the bedrock upon which great legacies are constructed,” he said.

With the capital injection from the sukuk initiative, QIU is strategically positioned to address this growing demand and make a substantial contribution to the educational landscape in the region, he added.