AmIslamic Bank issues Basel III-compliant tier 2 sukuk

KUALA LUMPUR: AMMB Holdings Bhd’s Islamic banking arm, AmIslamic Bank Bhd (“AmIslamic Bank”), issued its inaugural issuance of RM200mil Basel III-compliant Tier 2 Subordinated Sukuk Murabahah (“Tier 2 Sukuk Murabahah”).

This is also Malaysia’s first Basel III-compliant Tier 2 subordinated sukuk issuance and the world’s first Basel III-compliant Tier 2 subordinated sukuk to be issued under the syariah principle of Murabahah based on commodity trading (via a Tawarruq arrangement).