Maybank raises RM3bil via tier two subordinated Sukuk Murabahah

KUALA LUMPUR: Malayan Banking Bhd (Maybank) has completed the issuance of Tier 2 subordinated sukuk murabahah of RM3 billion in nominal value.

In a filing with Bursa Malaysia today, the country’s biggest lender said the proceeds from the sukuk, which were rated AA1 by RAM Rating Services Bhd, would be applied for three Shariah-compliant purposes.

Among others, the proceeds will be used to fund the issuer’s investments in ringgit-denominated and foreign currency-denominated Islamic financial instruments approved by Bank Negara Malaysia’s Shariah Advisory Council or the Securities Commission’s Shariah Advisory Council.

Maybank said the proceeds would also be used to fund Islamic business activity of Maybank’s subsidiaries and overseas branches, as well as any other Shariah-compliant business activities of the issuer, where the returns from such investments would be used for the periodic profit payment of the subordinated sukuk murabahah.

The bank said any such returns with an amount higher than the periodic profit payment, at that point in time, could be used for any of those three purposes.

The sukuk have tenures of 10 years (RM2.3 billion nominal value) and 12 years (RM0.7 billion), with profit rates of 2.9 per cent and 3.1 per cent per annum, respectively.

Source: NST