DNeX lodges RM3 billion sukuk wakalah programme with SC

Dagang NeXchange Bhd (KL:DNEX) lodged an Islamic notes programme of up to RM3.0 billion in nominal value with the Securities Commission Malaysia on 31 March 2026, the technology infrastructure services provider said in a Bursa Malaysia filing the following morning (The Edge Malaysia). The sukuk wakalah programme is the group's first foray into Islamic debt, and the first time a Malaysian tech player of DNeX's scale has tapped the domestic sukuk market with both a senior and a perpetual tranche in a single shelf. Proceeds will go to working capital, investments, capital expenditure and debt repayment across the group and its subsidiaries, with any sustainability-linked tranches earmarked for projects under DNeX's Sustainable Finance Framework.

The deal

The programme is structured as a Sukuk Wakalah based on the Shariah principle of Wakalah Bi Al-Istithmar and comprises two layers: senior Islamic medium-term notes (Senior Sukuk Wakalah) and subordinated perpetual Islamic notes (Perpetual Sukuk Wakalah). RAM Rating Services Bhd has assigned a rating of A1/Stable to the senior tranche and A3/Stable to the perpetual tranche. RAM Sustainability Sdn Bhd has separately assigned a Gold Sustainable Finance Rating after a second-party opinion on DNeX's sustainable finance framework, which means the group can issue use-of-proceeds green or social instruments under the same shelf.

CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint principal advisers, joint lead arrangers, joint lead managers and joint sustainability structuring advisers for the programme. CIMB IB is the sole facility agent, while CIMB Islamic Bank Bhd and Maybank Islamic Bhd act as joint Shariah advisers. Group chief financial officer Vinie Chong, a CFA and CPA charterholder, said the programme gives the group "greater flexibility to optimise its capital structure and cash flow management" while supporting continued growth across its three core businesses — semiconductor, information technology and energy.

The first issuance has not yet been priced, and the filing does not specify a drawdown window, target tenor or coupon. DNeX's most recent annual report, lodged the same week as the sukuk filing, describes the RM3.0 billion Sukuk Wakalah Programme as a "meaningful step in broadening the group's funding options" and a primary stream for "selective capital deployment for operational requirements and strategic initiatives." RAM's rating note, cited in the Edge report, said the credit profile reflects the group's diversified business mix and a strong presence in semiconductor and IT, segments that have materially different working-capital cycles from the legacy energy business.

Why this matters

The structure is the most interesting data point. Few Malaysian tech issuers have priced a sukuk that combines a conventional medium-term senior tranche with a subordinated perpetual — a layer that is, in economic substance, closer to Additional Tier 1 capital than to a vanilla corporate bond. That matters because it lets DNeX raise ringgit at a cost that sits between senior debt and equity, without diluting existing shareholders or committing to a fixed maturity. For investors, a perpetual sukuk carries a mandatory and optional deferral feature that gives the issuer some latitude on profit payments in stress scenarios, which is why RAM has rated the perpetual tranche two notches below the senior at A3.

The size — RM3.0 billion in nominal value — is large by Malaysian tech-issuer standards. DNeX is the country's only listed technology infrastructure services group with meaningful semiconductor exposure, and the sukuk shelf gives the group firepower for the kind of selective M&A and capex that the past two years have demanded across its semiconductor, IT and energy segments. The Edge report also references the broader Malaysian sukuk backdrop: Fitch Ratings said Malaysian debt capital market issuance exceeded US$45 billion in the first five months of 2026, with sukuk accounting for around 63% of total issuance, and Malaysian issuers representing about one-third of global sukuk outstanding at US$363 billion. Malaysia continues to hold its position as the world's largest sukuk market.

The story is also a sign of where Malaysian tech capital is coming from in 2026. Equity crowdfunding, growth-stage VC and the various MyCIF incentive programmes remain the dominant funding channel for early-stage Malaysian tech, but for a publicly listed group with three operating segments and a real capex pipeline, the sukuk shelf is faster, cheaper and ringgit-denominated. The Edge report quotes RAM as saying the ratings reflect the group's diversified business profile and strong presence in semiconductor and IT — both sectors that Malaysian policymakers have been trying to anchor locally, particularly through the National Semiconductor Strategy and the New Industrial Master Plan 2030.

What's next

Three things to watch. First, the first drawdown under the programme — the filing does not specify timing, but comparable Malaysian sukuk wakalah programmes by large issuers typically issue their inaugural tranche within 60 to 90 business days of lodgement. Second, the tenor and profit rate of that first issuance, which will set the market's read on DNeX's cost of capital under the new structure. Third, segment-level deployment: any subsequent quarterly Bursa disclosure that attributes new capex to the sukuk proceeds, or that links an M&A payment to the programme, will confirm whether the perpetual layer is being used as quasi-equity for inorganic moves or as a working-capital backstop. The next DNeX quarterly results, due in the second half of August 2026, will be the first formal read on the group's funding plans under the new shelf.

Source: The Edge Malaysia — Dagang NeXchange lodges RM3 bil sukuk wakalah programme for working capital, capex