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March 29, 2024 -Friday

 
  SME BANK'S NEW SUSTAINABILITY SUKUK OVERSUBSCRIBED WITH ORDERS EXCEEDING RM1.0 BILLION

Tuesday 30/05/2023



 
KUALA LUMPUR, May 30 (Bernama) -- Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank), is pleased to announce the successful issuance of its new 5-year Sustainability Sukuk, under the book-building exercise. The total order for the Sukuk issuance exceeded RM1.0 billion, surpassing the initial desired size of RM500 million.
 
SME Bank’s Group President/Chief Executive Officer, Datuk Wira (Dr.) Aria Putera Ismail said, "Due to overwhelming demand from local and foreign financial institutions, fund management companies, takaful/insurance firms, and Government-Linked Investment Companies, SME Bank has opted to upsize the total issuance amount to RM1.0 billion.”
 
Datuk Wira Aria added, “This achievement demonstrates the confidence of investors and the wider financial community in SME Bank's ability to drive the SMEs growth, especially in ensuring them to sustain. SME Bank Sustainability Sukuk was priced at a competitive profit rate of 4.05%, amidst a challenging market environment.”
 
SME Bank's Sukuk Wakalah programme has been assigned AAA ratings by the Malaysian Rating Corporation Bhd (MARC) and achieved the Gold standard, the highest rating under MARC's Sustainability Sukuk framework. These accolades highlight SME Bank's strong creditworthiness and unwavering commitment to sustainable practices.
 
SME Bank’s Head of Treasury, Mohd Nazri Abu Samah added, “MARC rating agency has reaffirmed its AAAIS/MARC-1IS ratings with a ‘Stable’ Outlook on SME Bank's Islamic Medium-Term Notes (IMTN) Programme of up to RM3.0 billion and Islamic Commercial Papers (ICP) Programme of up to RM1.0 billion, with a combined aggregate limit in nominal value of up to RM3.0 billion. These ratings underscore SME Bank's solid financial position and its ability to consistently deliver on its commitments.”
 
The proceeds from this Sukuk issuance will be exclusively utilised to finance projects aligned with environmental, social, and governance (ESG) considerations. This strategic focus on ESG projects not only contributes to sustainable development but also empowers SME Bank to offer innovative financing solutions tailored to the unique needs of small and medium enterprises.
 
The issuance of the Sukuk was successfully led by esteemed financial institutions, RHB Investment Bank Berhad, AmInvestment Bank Berhad, CIMB Investment Bank Berhad, and Maybank Investment Bank Berhad.
 
SME Bank, a Development Financial Institution (DFI) wholly owned by the Ministry of Finance and regulated by Bank Negara Malaysia (BNM), has long been recognised as a key player in the development of SMEs in Malaysia. With this successful issuance of the Sustainability Sukuk, SME Bank reaffirms its mission to empower SMEs, promote sustainable growth, and contribute to the nation's economic prosperity.

Link for photo - https://bit.ly/3mk15qt

SOURCE: SME Bank

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Arnee Ismail
Email: 
arnee.ismail@smebank.com 

--BERNAMA

 
 
 

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