KUALA LUMPUR (Nov 7): BIMB Holdings Bhd said it has issued the first tranche of its Sukuk Murabahah programme to raise RM300 million.

In a statement to Bursa Malaysia today, the company said the subordinated sukuk murabahah issued under the programme shall qualify as Tier 2 regulatory capital of Bank Islam Malaysia Bhd in compliance with Bank Negara Malaysia’s Capital Adequacy Framework for Islamic Banks (Capital Components).

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

BIMB Bank said the sukuk has a tenure of 10 years and is non-callable for five years.

The Sukuk Murabahah Programme was lodged with the Securities Commission Malaysia on Sept 6, 2018, which allowed the company to issue subordinated sukuk murabahah and/or senior sukuk murabahah under the Programme.

RAM Rating Services Bhd has assigned a final long-term rating of ‘A1/stable’ and ‘AA3/stable’ to the subordinated sukuk murabahah and senior sukuk murabahah, respectively, under the RM10 billion sukuk programme.

Bank Islam is also the principal adviser, lead arranger, lead manager and Shariah adviser for the Sukuk Murabahah Programme.

BIMB's shares rose five sen or 1.35% to close at RM3.75 today, giving it a market capitalisation of RM6.35 billion.