French banking giant Societe Generale (SocGen) is set to launch a MYR1 billion ($311.3 million) multi-currency sukuk (Islamic bonds) programme in Malaysia, according to a report by RAM Ratings.
The first multi-currency Islamic MTN programme by the bank is launched through its subsidiary Societe Generale Bank and Trust SA’s (SGBT) wholly owned subsidiary, ALEF II SA.
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RAM Ratings CEO Foo Su Yin said SocGen’s maiden sukuk also has the distinction of being Malaysia’s first sukuk to be issued by a French bank.
"This milestone is a notable achievement for the global sukuk market and reinforces Malaysia’s position as an international Islamic financial centre," added Yin.
The programme will feature a structure with back-to-back Shariah-compliant contracts with its wholly owned subsidiaries, SGBT as the obligor and ALEF as the Issuer. With SGBT being an immediate counterparty to ALEF, the transaction structure also provides the sukuk holders legal recourse to SocGen.
RAM Ratings, meanwhile, has assigned an AAA(s)/Stable rating to the bond program, citing the company’s strong franchise in retail banking, corporate and investment banking in Europe.
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