Thursday 23 April 2015

Malaysia: Bank Islam issues first sukuk tranche totalling RM300mil

KUALA LUMPUR: Bank Islam Malaysia Bhd has issued the first tranche amounting to RM300mil under its subordinated sukuk murabahah programme of up to RM1bil in nominal value.

BIMB Holdings Bhd (BHB) told Bursa Malaysia that the tranche, issued on Wednesday, would have a 10-year tenure and could only be redeemed after five years.

RAM Rating Services has given the sukuk an A1/stable rating.

BHB had in October announced that its unit Bank Islam had obtained approvals from Bank Negara and the Securities Commission to establish the subordinated sukuk murabahah programme.

Under the programme, Bank Islam is given the flexibility to issue subordinated sukuk murabahah during the availability period therein based on the capital requirements of Bank Islam.

The programme has a tenure of up to 30 years from the date of the first issuance of the subordinated sukuk murabahah.

Each tranche of the subordinated sukuk murabahah to be issued is required to have a tenure of not less than five years and up to 30 years from the issue date provided that the subordinated sukuk murabahah mature on or prior to the expiry of the tenure of the programme.

(The Star Online / 22 April 2015)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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