It was reported that SKPetro will have its Shariah compliant status revoked in Nov 2014 due to its rising non Shariah compliant borrowings.
The latest list of Shariah compliant stocks, with SKPEtro retaining its place in the list despite its non Shariah compliant borrowings rising above the threshold of 33% of total assets.
The next review by the SC would be in Nov 2014.
Althouhg SKPEtro’s conventional debt of rm12.4 billion accounted for 46% of total assets of rm26.6 billion as at Jan 31 2014, its audited FY2014 had not been finalized yet.
The exclusion of the company was only a matter of time as reported as its rm16.5 billion refinancing programme comprised conventional loan facilities, while its acquisition of Newfield International’s assets for rm2.8 billion would be funded by USD based borrowings.