Malaysia's Public Sector Home Financing Board issues RM3.25b sukuk

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KUALA LUMPUR (April 20): Malaysia's Public Sector Home Financing Board had today issued up to RM3.25 billion worth of Islamic bonds or sukuk to finance the provision of housing loans to the public sector employees.

The board is also known as Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA), a statutory body under the public sector Home Financing Board Act 2015.

In a statement today, LPPSA said the RM3.25 billion Islamic medium term notes (IMTN) formed a part of its RM25 billion Islamic commercial papers/IMTN programme, which is guaranteed by the Malaysian Government.

LPPSA said: "The strong demand demonstrates LPPSA's credential as a new sukuk issuer in the market with a strong credit standing."

"Offered through book-building process, the sukuk issued in tranches of five-year to 30-year was priced at 4.17% to 5.225% per annum across tenures," LPPSA said.

Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, OCBC Bank (M) Bhd and RHB Investment Bank Bhd were the joint lead managers and joint book runners for the book-building exercise.

CIMB is also the facility agent while RHB Islamic Bhd is the Shariah adviser.