Bank Islam issues RM1bil senior Sukuk Murabahah

KUALA LUMPUR: Bank Islam Malaysia Bhd has successfully issued RM1bil senior sukuk Murabahah under its RM10bil sukuk Murabahah programme in nominal value (sukuk Murabahah programme).

The bank, in a statement, said the issuance of the senior sukuk Murabahah received an overwhelming response from investors, with a bid-to-cover ratio of over 3.2 times the issuance size after the upsizing from RM500mil.

“The proceeds from this issuance will finance Bank Islam’s banking activities, working capital requirements, and other corporate purposes. The use of proceeds under the sukuk Murabahah programme shall also be Shariah-compliant,” Bank Islam said.

The sukuk Murabahah, rated AA3/stable by RAM Ratings Services Bhd, offers fixed profit rates of 4.01% and 4.13% per annum, with respective tenures of five and seven years.

Bank Islam is the principal adviser, lead arranger, lead manager and shariah adviser for the sukuk Murabahah programme.