Bank Islam Malaysia Berhad (Bank Islam) has accomplished the issuance of its fifth tranche of Subordinated Sukuk Murabahah, totaling RM400.0 million, within the framework of its RM10.0 billion Sukuk Murabahah Programme.
The Sukuk Murabahah shall qualify as Tier 2 regulatory capital of Bank Islam in compliance with Bank Negara Malaysia’s Capital Adequacy Framework for Islamic Banks (Capital Components). Hence, it will enhance the capital adequacy of Bank Islam in line with the Basel III requirements.
The Sukuk Murabahah, which will be redeemed at its full nominal value upon maturity, comes with a call option on its fifth anniversary and is rated A1/stable by RAM Rating Services Berhad.
Bank Islam is the principal adviser, lead arranger, lead manager, and Shariah adviser for the Sukuk Murabahah program.