KUALA LUMPUR, June 11 (Bernama) -- Bank Muamalat Malaysia Berhad’s (Bank Muamalat) RM500 million Subordinated Sukuk Murabahah received positive response from a diversified and wider range of investors during its book-building exercise recently.

The RM500 million Subordinated Sukuk Murabahah, which will be issued on 15 June 2021, was competitively priced during the book-building exercise recently and registered a bid-to-cover (BTC) of 1.40 times (pre-final price fixing) and 1.28 times (post-final price fixing) over the proposed issue size with inclusion of unexpected new investors during the day. The joint lead managers received diversified orders from various types of investors including financial institutions, non-bank financial institutions, asset management companies, government agencies, insurance companies and also high net worth investors.

Bank Muamalat’s Chief Executive Officer, Khairul Kamarudin said the issuance under the Subordinated Sukuk Murabahah Programme reflects the market’s confidence in the Bank’s strong fundamentals and strategic direction.

The Subordinated Sukuk Murabahah is the second series issuance to be issued under Bank Muamalat’s established RM1 billion 20-year Subordinated Sukuk Murabahah Programme (2016/2036), which qualified as Tier-2 capital  under  the  Bank Negara Malaysia’s (BNM)   Policy  Document  on  Capital   Adequacy   Framework   for   Islamic  Banks   (Capital  Components) (CAFIB). 

 “The proceeds raised from the Subordinated Sukuk Murabahah will be utilised for our Islamic banking activities and working capital requirements, thus putting the bank on a stronger footing and steering the bank’s growth in the post-pandemic landscape,” added Khairul.

Bank Muamalat is the principal adviser and lead arranger jointly with OCBC Al-Amin Bank (OCBC Al-Amin) for the Subordinated Sukuk Murabahah Programme, whilst the joint lead managers are Bank Muamalat, Bank Islam Malaysia Berhad, Maybank Investment Bank Berhad, RHB Investment Bank Berhad and OCBC Al-Amin.

Source: Bank Muamalat Malaysia Berhad
 
FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Saidatul Leiza Suleiman
Tel: +6011 1061 5266
Email: leiza@muamalat.com.my

--BERNAMA