RHB unit issues RM500mil Islamic bonds

KUALA LUMPUR: RHB Bank Bhd’s wholly-owned subsidiary RHB Islamic Bank Bhd has issued subordinated sukuk murabahah worth RM500mil in nominal value.

In a filing with Bursa Malaysia, RHB Bank said the sukuk, rated AA2/Stable by RAM Rating Services Bhd, is issued for a tenure of 10 years non-callable five years with a fixed profit rate of 4% per annum, payable semi-annually in arrears throughout the entire tenure.

“The sukuk will qualify as Tier-2 capital of RHB Islamic Bank, subject to compliance with the requirements as specified in the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara on Dec 15, 2023.

“Proceeds raised from the subordinated sukuk murabahah will be utilised for RHB Islamic Bank’s syariah-compliant working capital and general banking purposes,” it said. — Bernama