View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 20, 2014updated 04 Apr 2017 2:29pm

AmIslamic Bank receives approval to launch MYR3 billion sukuk

AmIslamic Bank has received approval from the Securities Commission Malaysia to set up a Subordinated Sukuk Murabahah Program worth MYR3 billion (US$902.86 million).

By Verdict Staff

AmIslamic Bank has received approval from the Securities Commission Malaysia to set up a Subordinated Sukuk Murabahah Program worth MYR3 billion (US$902.86 million).

The Basel III-compliant Malaysian Sukuk is expected to launch in the first quarter of this year.

The proceeds from this offering will be used for AmIslamic’s general working capital for its Islamic business.

Designed to fund working capital and increase Tier 2 capital reserves at the bank, the sukuk has a tenor of 30 years from the date of the first issuance and is planned in accordance with the Capital Adequacy Framework for Islamic Banks issued by the central bank in 2012.

This programme will offer AmIslamic the flexibility to issue the Sukuk tranches during the availability period of the program based on the funding requirements of the bank.

However, each tranche will have a tenor of at least three years, subject to their maturing on or before the expiry of the programme.Additionally, AmInvestment Bank will serve as the principal adviser, lead arranger, lead manager and Shariah adviser alongside Amanie Advisors for the programme.

Wong Yin Ching, co-head of financial institutions ratings at RAM Ratings said: "With Basel III regulation on capital components coming into effect early last year, we expect more issuances of Basel III-compliant sukuk in the Malaysian debt capital market."

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International