BANK MUAMALAT RAISES RM300 MLN VIA SUBORDINATED SUKUK MURABAHAH ISSUANCE

KUALA LUMPUR, July 7 (Bernama) -- Bank Muamalat Malaysia Bhd (Bank Muamalat) said its RM300 million Subordinated Sukuk Murabahah received overwhelming response from a diversified and wide range of investors during its book-building exercise recently.

In a press release today, the bank said the sukuk was competitively priced at 5.33 per cent and will be issued on July 20, 2022.

The RM300 million Subordinated Sukuk Murabahah is the third series issuance under Bank Muamalat’s established RM1 billion 20-year Subordinated Sukuk Murabahah Programme (2016/2036) which qualified as tier-2 capital under the Bank Negara Malaysia’s policy document on Capital Adequacy Framework for Islamic Banks Capital Components.

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It managed to register a high bid-to-cover of 2.31 times before it settled at 1.85 times over the proposed issue size with inclusion of unexpected new investors, it said.

President and chief executive officer Khairul Kamarudin said the interest shown reflects the market’s confidence in the bank’s strong fundamentals and strategic direction.

“The proceeds raised will be utilised for our Islamic banking activities and working capital requirements, thus putting the bank on a stronger footing for its continued growth,” said Khairul.

The statement said the joint lead managers received diversified orders from various investors including financial institutions, asset management companies, government agencies, insurance companies and also high net worth investors.

Bank Muamalat is the principal adviser, lead arranger and lead manager together with OCBC Al-Amin Bank Bhd. Other joint lead managers include Bank Islam Malaysia Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd.

On a separate note, Khairul also said that ratings agency MARC Ratings has recently upgraded the bank’s financial institution ratings to A+/MARC-1 and concurrently upgraded its rating on the bank’s Islamic Senior Notes Programme (Senior Sukuk) of up to RM2 billion to A+IS, with stable outlook.

The ratings upgrade is premised on Bank Muamalat’s continued improvement in its financial performance, particularly its asset quality and profitability metrics which are in line with its peers in the same rating band.

-- BERNAMA