RAM Ratings assigns AA3(s)/Stable and P1(s) ratings to Klanggroup Holdings' maiden Sukuk Wakalah issued via Klanggroup Capital

RAM Ratings has assigned initial ratings of AA3(s)/Stable and P1(s) to the Islamic Medium-Term Notes and Islamic Commercial Papers under Klanggroup Capital Berhad's RM3.0 bil IMTN Programme and RM1.0 bil ICP Programme, respectively (collectively, the Sukuk Wakalah Programmes). Klanggroup Capital is a non-operating, wholly owned funding vehicle of Klanggroup Holdings Sdn Bhd (KHSB or the Group, formerly WorldKlang Group Holdings Sdn Bhd).

The enhanced ratings reflect KHSB's credit profile as corporate guarantor. Its guarantee is a direct, unsubordinated and unconditional obligation that ranks pari passu with the Group's other unsecured obligations. Issuances under the Sukuk Wakalah Programmes are subject to a 0.85 times finance-to-equity covenant. In addition, any issuance that brings the cumulative outstanding notes to RM500 mil and above is subject to RAM Ratings' assessment of its rating impact.

KHSB is a mid-sized property developer with over a decade of operating history. Through its Excellent Technology Park and K International Industrial Park brands, the Group mainly develops industrial land and factories for medium and large enterprises. Its early-mover advantage in selected industrial corridors, particularly Klang-Meru, proximity to Port Klang and end-user-oriented product specifications have supported healthy take-up across cycles. Demand is further underpinned by a largely owner-operator buyer base. As at end-December 2025, the Group had completed or ongoing projects spanning more than 860 acres with combined GDV of over RM5 bil, and a landbank of about 550 acres with estimated GDV of RM3.4 bil.

Profitability compares favourably with peers, with OPBDIT margins averaging 33.7% over the past five years, supported by low land costs, in-house construction, disciplined execution and a higher contribution from industrial land