Bank Islam raises RM400m from sukuk issuance
Bank Islam Malaysia Bhd has issued the second tranche of RM400 million subordinated sukuk under its RM10 billion Sukuk Murabahah Programme today, the first subordinated sukuk issued by an Islamic bank in Malaysia this year.
The sukuk would qualify as Tier 2 regulatory capital of Bank Islam in compliance with Bank Negara Malaysia’s (BNM) Capital Adequacy Framework for Islamic Banks (Capital Components), it said in a statement today.
Hence, the issuance would enhance the capital adequacy of Bank Islam in line with the Basel III requirements, the bank said.
The sukuk, which will be redeemed at their full nominal value on maturity, comes with a call option on its fifth anniversary and is rated A1/stable by RAM Rating Services Bhd (RAM Ratings).
The Sukuk Murabahah Programme was lodged with the Securities Commission (SC) on September 6, 2018.
Under the programme, Bank Islam said it was given the flexibility to issue subordinated sukuk murabahah and/or senior sukuk murabahah during the availability period of the programme.
RAM Ratings has reaffirmed a final long-term rating of “A1/stable” and “AA3/stable” to the subordinated sukuk murabahah and senior sukuk murabahah respectively under the Sukuk Murabahah Programme, of which Bank Islam is also the principal adviser, lead arranger, lead manager and shariah adviser for the programme.
The Sukuk Murabahah Programme of RM10 billion is the second sukuk programme established by the bank. The first tranche under the programme was issued on November 7, 2018, amounting to RM300 million.
Since October 2014, Bank Islam had obtained approvals from BNM and the SC to established its first sukuk programme in the form of Subordinated Sukuk Murabahah Programme of RM1 billion. — Bernama
Courtesy by :https://www.malaymail.com/