AGROBANK’S financial excellence was acknowledged when it was announced as the winner of “Best Bank Sukuk for Malaysia Category”, in The Asset Triple A, Islamic Finance Awards 2022 on Oct 27.
The award is a testament to the success of Agrobank’s successfully priced its inaugural RM500mil Sukuk Wakalah Programme based on the Islamic principle of Wakalah Bi Al-Istithmar on Oct 18, last year.
The success of the issuance has also galvanised Agrobank’s brand identity as a business-driven entity by creating platforms to proactively optimise its capital structure in line with its mission, vision and business strategy.
Commenting on the award, Agrobank president and chief executive officer Tengku Ahmad Badli Shah Raja Hussin said, “We are very proud to receive this award as it is reflective of the innovative approaches that the Bank takes in conducting our business, be it financially or operationally.
“Our finance team, especially deserves to be commended for ensuring that this sukuk programme and its issuance was a success.
"This award represented a premier financial recognition for Agrobank as the award was reserved for distinctive organisations who are pivotal to the development of Malaysia as a leading Asian sukuk market.
“It also marked Agrobank’s commitment in enhancing Malaysia’s position as a global Islamic financial hub and solidifies its position as a leader in the global Islamic capital markets,” he further added.
The award was presented by The Asset’s managing editor, Chito Santiago and received by Agrobank chief finance officer Kamarul Azman Kamarozaman@Amir at the Four Seasons Hotel Kuala Lumpur on Thursday.
Agrobank introduced a dual-tranche debut offering to the market on a five- and seven-year sukuk that landed at a tight spread of 51 basis points (bps) and 49 bps respectively.
The book was closed at competitive levels of 3.63% per annum for the five-year sukuk and 3.90% per annum for the seven-year amid a challenging market environment.
This was achieved after price tightening of between four to six bps across the tenures from the initial price guidance.
The inaugural issuance saw strong orders from quality investors comprising government agencies, financial institutions, asset management companies and insurance companies, which resulted in an oversubscription of the amount offered.
The Sukuk Wakalah Programme has been assigned a rating of AAA by Malaysian Rating Corporation Berhad.
Maybank Investment Bank has acted as the sole principal adviser, sole lead arranger and sole lead manager for the Sukuk Wakalah Programme for Agrobank.
The Asset Triple A, Islamic Finance Awards 2022 recognises the most influential and prominent financial institutions and organisations that are seen as leaders, innovators and visionaries in the domestic bond market and also in their respective indus