BANK Rakyat is establishing its Sukuk Wakalah Programme of up to RM10bil in nominal value through a special purpose company, Imtiaz Sukuk II Bhd.
Maybank Investment Bank Bhd is the principal adviser and lead arranger for the 30-year Sukuk Wakalah Programme.
The first issue of the Sukuk is expected to begin soon with RM500mil and an option to increase it.
For the first issue, Bank Muamalat Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd were appointed joint lead managers.
Speaking at the agreement signing ceremony held at Menara Kembar Bank Rakyat, Kuala Lumpur, Bank Rakyat chief executive officer Datuk Rosman Mohamed said the Sukuk programme can diversify the bank’s portfolio while increasing the regulatory ratio for the banking business’ needs.
“This programme will also allow the bank to obtain long-term funding with a fixed rate in addition to diversifying the long-term funding composition, ” he said.
Present at the event was Entrepreneur Development and Cooperatives Minister Datuk Seri Wan Junaidi Tuanku Jaafar, who commended Bank Rakyat for its achievement, reflecting the bank’s proactive measures in its capital management.
“Since 2017, Sukuk has contributed 70% of the issuance of corporate bonds in the country.
“For investors, the Sukuk market can provide greater potential to diversify their investments.
“As a significant source of financing for large-scale investment projects, the Sukuk market plays an important role in facilitating the economic development process, ” he said.
The programme, structured on the syariah principle of Wakalah Bi Al-Istithmar approved by the Securities Commission Malaysia, is given an AA2(s) rating by RAM Rating Services Bhd.
Also present were Bank Muamalat Malaysia chief executive officer Khairul Kamarudin, CIMB Investment Bank chief executive officer Jefferi M. Hashim, Maybank Investment Bank chief executive officer Fad’l Mohamed and RHB Investment Bank chief executive officer Robert Huray.