The programme will be established under the syariah principle of Wakalah Bi Al-Istithmar for the issuance of senior sukuk wakalah, tier-two sukuk wakalah and/or additional tier-1 capital (AT1) sukuk wakalah.
The programme has been structured to provide MBSB Bank with the flexibility to issue, from time to time.
Proceeds from the issuance of the sukuk wakalah shall be utilised by MBSB Bank for its syariah-compliant general banking purposes and to refinance its outstanding capital instruments.
The issuance of senior sukuk wakalah provides the MBSB Bank with senior funding for its general banking purposes whilst the tier-2 sukuk wakalah and AT-1 sukuk wakalah are structured to comply with Bank Negara’s capital adequacy framework for islamic banks (capital components).
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