KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) will issue the world's first RM3bil Structured Covered Sukuk Commodity Murabahah programme for 15 years, with dual recourse structure and backed by financing receivables.
It will be done in collaboration with RHB Investment Bank (RHBIB).
MBSB will act as the issuer with RHBIB being the principal advisor, lead arranger and lead manager for the programme.
President and chief executive officer Datuk Ahmad Zaini Othman said MBSB would disburse RM495mil for the first tranche of the programme beginning December.
"Under the programme, the sukuk will be issued directly from the balance sheet of MBSB to help strengthen its position and strategically support the growth of our financing assets," he told reporters here today after signing an agreement with RHBIB to facilitate the programme.
Ahmad Zaini said the programme would strengthen liquidity position, enhance MBSB's liability management strategy and provide access to competitive fund pricing.
"With the RM3bil structured covered sukuk programme, MBSB will become a significant and an active contributor to the country's Islamic debt capital market. "It (the programme) will allow us to have access to a wider pool of sophisticated investors in that particular segment," he said.
He added that the programme was part of the company's plans to continue to increase and boost MBSB's presence in the corporate segment, especially for the provision of project financing of government and private finance initiative projects.
"We wish to inform that MBSB enjoyed a corporate asset growth of 9.6% this year compared with 2012 and we foresee this upward trend will remain in the coming years.
"To date, we have also secured the financing of several private finance initiative projects worth over RM5.6bil," Ahmad Zaini said.
On prospects for 2014, he said the company aimed to increase corporate asset growth between 10% and 15% based on 2013's performance.
Meanwhile, RHB Investment Bank Group managing director Kellee Lam said the bank was optimistic that the first-of-its-kind issuance would be met with resounding success and that it looked forward to supporting MBSB in its book-building roadshows around the country.
"This issuance is also set to further establish and solidify Malaysia's position as a regional and global Islamic financial centre.
"Malaysia continues to be the world's leading Islamic financial market, capturing over 60 per cent of the robust global sukuk market," he added. - Bernama