KUALA LUMPUR: AMMB Holdings Bhd's unit AmIslamic Bank Bhd has secured the Securities Commission's (SC) approval to set up a subordinated Sukuk Murabahah programme of up to RM3.0bil.
AMMB said on Wednesday that it had received the SC's nod on Tuesday while it had obtained Bank Negara Malaysia's approval on Oct 21, 203.
"Under the programme, AmIslamic is given the flexibility to issue subordinated Sukuk Murabahah during the availability period of the programme based on the funding requirements of AmIslamic," it said.
The programme has a tenor of up to 30 years from the date of the first issuance of the subordinated Sukuk Murabahah. Each tranche to be issued shall have a tenor of at least five years subject to their maturing on or prior to the expiry of the programme.
RAM Rating Services Bhd assigned a preliminary long-term rating of AA3 to the subordinated Sukuk Murabahah under the programme.
AMMB's investment banking subsidiary AmInvestment Bank Bhd is the principal adviser, lead arranger, lead manager, facility agent and Shariah adviser (backed by AmIslamic's Shariah committee), on a joint-role basis with Amanie Advisors Sdn Bhd) for the programme.