The bank also announced the successful pricing of its debut RM500mil Basel III-compliant tier-two subordinated Islamic medium-term notes.
PETALING JAYA: United Overseas Bank (M) Bhd (UOB Malaysia) has established its inaugural RM5bil Islamic debt programme under the syariah principle of Wakalah Bi Al-Istithmar.
The bank also announced the successful pricing of its debut RM500mil Basel III-compliant tier-two subordinated Islamic medium-term notes (Tier 2 Sukuk Wakalah) which are due in February 2034 and callable in February 2029.
“During the book-building exercise, the Islamic debt offering received an overwhelming response from the market and was oversubscribed by approximately 3.39 times,” the bank said in a statement.
The final order book of RM1.7bil enabled UOB Malaysia to close at a fixed profit rate of 4.01% per annum, it added.
At 45 basis points above the benchmark Malaysian Government Securities, this was the tightest spread ever recorded for a tier two capital instrument in the ringgit-denominated market to date, it noted.
“We are pleased that our first sukuk offering was very well received by the market.
“The oversubscription and the tight pricing achieved reflect investors’ confidence in UOB Malaysia’s solid financial position,” said chief executive officer Ng Wei Wei in the statement.
