RHB Islamic Bank issues RM250mil sukuk - Business News | The Star Online

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RHB Islamic Bank issues RM250mil sukuk


KUALA LUMPUR: RHB Islamic Bank Bhd, which is eyeing the top three spot in the local Islamic banking industry, has issued RM250mil subordinated sukuk murabahah, its first bond issuance in about three years.

Parent company RHB Bank Bhd told Bursa Malaysia that RHB Islamic’s sukuk, rated AA3 by RAM Rating Services Bhd, would mature in 10 years and could only be redeemed from the sixth year onwards.

The sukuk has a fixed profit rate of 4.88% per annum, payable semi-annually in arrears throughout the entire tenure.
 
RHB Islamic, the fifth largest Islamic bank in the country in terms of assets, last issued sukuk murabahah in May 2014. The RM500mil tranche also has a tenure of 10 non-callable five years, while the profit rate is 4.95% per annum.

RHB said proceeds raised from the sukuk issuance would be used for RHB Islamic’s syariah compliant working capital and general banking purposes.

In 2016, RHB Islamic turned in a profit after tax of RM324.8mil, a 27.4% increase against RM254.8mil in the preceding year.
 

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