KUALA LUMPUR: Maybank Islamic Bhd has issued its maiden Basel III-compliant Tier-2 capital subordinated sukuk murabahah of RM1.5bil pursuant to a subordinated sukuk murabahah programme of up to RM10bil in nominal value established in March 2014.
The lead arranger and lead manager for the subordinated sukuk programme is Maybank Investment Bank Bhd.
Maybank Islamic chief executive officer Muzaffar Hisyam said it was the largest (single) issuance of ringgit by an Islamic Financial institution. “Proceeds raised from the subordinated sukuk murabahah can be used to augment the business of the bank thus positioning Maybank Islamic for stronger growth domestically and regionally,” he said in a statement.
The subordinated sukuk murabahah shall have a tenure of 10 years from the issue date on a 10 non-callable five basis. The RM1.5bil subordinated sukuk will qualify as Tier-2 capital of Maybank Islamic for the purpose of Bank Negara’s capital adequacy framework for Islamic banks.