KUALA LUMPUR: Malayan Banking Bhd
(Maybank) has completed the issuance of RM2.5 billion additional tier 1 (AT1) sukuk mudharabah under its sukuk programme.
In a Bursa Malaysia filing today, the banking group said the perpetual sukuk comprises three series with nominal amounts of RM750 million, RM1.10 billion and RM650 million, respectively.
The RM750 million tranche carries a fixed distribution rate of 4.85 per cent per annum until its first call date on Sept 29, 2031, while the RM1.10 billion tranche carries a rate of 5.11 per cent until its first call date on Sept 28, 2033.
Meanwhile, the RM650 million tranche has a fixed distribution rate of 5.15 per cent per annum until its first call date on Sept 26, 2036.
"The relevant reset distribution rates for the three tranches are based on the prevailing five-year, seven-year and 10-year Malaysian Government Securities rates, respectively, plus their respective initial spreads for fixed rates of 0.98 per cent, 0.97 per cent and 0.98 per cent per annum,” said Maybank.
The proceeds would be used for shariah-compliant purposes, including investments in ringgit- and foreign currency-denominated Islamic financial instruments approved by Bank Negara Malaysia's Shariah Advisory Council or the Securities Commission Malaysia's Shariah Advisory Council.
It would also be used to fund the Islamic business activities of Maybank's subsidiaries and overseas branches, as well as other shariah-compliant business activities, said Maybank.
The returns from the investments would be used for the periodic distributions of the AT1 sukuk mudharabah, which are payable semi-annually.
The sukuk has been assigned an AA3 rating by RAM Rating Services Bhd. - Bernama
