Overwhelming demand for MBSB Bank’s maiden sukuk

PETALING JAYA: MBSB Bank Bhd has successfully priced its RM300mil sustainability sukuk wakalah offering under its RM5bil sustainability sukuk wakalah programme with a final order book of RM2.9bil, giving the transaction an order bid to cover ratio of 10 times.

In a statement, the lender said the overwhelming demand for the offering, which was priced on April 4, allowed the pricing to be further tightened by 30 points across the tenures from the high end of the initial price guidance.

The dual-tranche offering, RM200mil five-year tranche and a RM100mil seven-year tranche, were finally priced at Malaysian Government Securities plus 95 basis points or a final yield of 4.36% per annum and 4.73% per annum respectively.

“The offering marks our first sustainability sukuk issuance in the domestic capital markets, which demonstrates MBSB Bank’s strong commitment towards supporting the government’s sustainability agenda and initiatives,” said MBSB Bank acting CEO Datuk Nor Azam M Taib.

He added that the offering was priced amidst the volatile market conditions and selling pressures seen on the domestic government securities in response to the rising global yield.

Maybank Investment Bank Bhd is the sole lead manager and bookrunner for this transaction as well as the sole principal adviser, sole lead arranger and sole sustainability structuring advisor for the sustainability sukuk wakalah programme.