PETALING JAYA: Bank Islam Malaysia Bhd (BIMB) has issued its fourth tranche of RM300mil subordinated sukuk murabahah under its RM10bil sukuk murabahah programme on Nov 12 this year.

       In a statement yesterday, the bank said that the sukuk murabahah programme of RM10bil was the second sukuk programme established by the bank.

       “The programme issued its first tranche of RM300mil in November 2018, the second tranche of RM400mil in March 2020, followed by the third tranche of RM700mil in October 2020,” it said.

       The subordinated sukuk murabahah issued under the sukuk murabahah programme shall qualify as Tier 2 regulatory capital of BIMB in compliance with Bank Negara’s Capital Adequacy Framework for Islamic Banks (Capital Components).

       “Hence, it will enhance the capital adequacy of BIMB in line with the Basel III requirements,” it added.

       Under the sukuk murabahah programme, the bank has the flexibility to issue subordinated sukuk murabahah and senior sukuk murabahah during the availability period of the sukuk murabahah programme.

       “RAM Rating Services Bhd has reaffirmed a final long-term rating of A1 and AA3 to the subordinated sukuk murabahah and senior sukuk murabahah, respectively, under the sukuk murabahah programme,” it added. BIMB is also the principal adviser, lead arranger, lead manager and syariah adviser for the sukuk murabahah programme.

       BIMB’s group chief executive officer, Mohd Muazzam Mohamed said the bank was pleased to issue the fourth tranche its subordinated sukuk murabahah via book building.

       “The response has been positive, with orders being 2.32 times more than the issuance with a final pricing of 4.1%.

       “The overwhelming demand from investors is an indication of the confidence in the capital market has in Bank Islam and our long-term business sustainability,” he added.

       According to him, proceeds from the issuance will ensure BIMB is adequately capitalised beyond the minimum regulatory capital requirements.

       “The measure will further fortify our efforts to provide value to our customers as we embark on a new chapter for BIMB as a pure-play full-fledged Islamic bank listed in Bursa Malaysia,” he said.