KUALA LUMPUR: Malayan Banking Bhd

(Maybank) has completed the issuance of RM1.8 billion in subordinated Sukuk Murabahah under the RM30.0 billion Sukuk programme. 

Maybank said in a Bursa Malaysia filing today that the proceeds from the subordinated Sukuk Murabahah will be applied for Shariah-compliant purposes.

Specifically, to fund the issuer’s investments in ringgit-denominated and foreign currency-denominated Islamic financial instruments approved by Bank Negara Malaysia’s Shariah Advisory Council or the Securities Commission Malaysia’s Shariah Advisory Council.

"Also, funding of Islamic business activity of Maybank’s subsidiaries and overseas branches; and any other Shariah-compliant business activities of the issuer,” it said. 

The RM1.8 billion subordinated Sukuk Murabahah will qualify as Tier 2 capital of Maybank in accordance with Bank Negara Malaysia’s Policy Document on Capital Adequacy Framework (Capital Components) issued on June 14, 2024.

The tenure of the subordinated Sukuk Murabahah is 12 years on a 12 non-callable 7 basis, while the maturity date is Aug 28, 2037. - Bernama