Friday 29 Mar 2024
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KUALA LUMPUR (April 15): Bank Rakyat via special purpose vehicle (SPV) Imtiaz Sukuk II Bhd will issue RM1 billion worth of Islamic bonds or sukuk under the group's Sukuk Wakalah programme of up to RM10 billion.

According to the RM1 billion bond issue's pricing supplement dated April 14, the RM1 billion sukuk, which will be issued next Monday (April 19) will be done under a five-year tranche of RM300 million with a periodic distribution rate of 3.54% a year and a seven-year tranche of RM700 million with a periodic distribution rate of 3.9% a year.

The maturity dates for the RM300 million and RM700 million tranches fall on April 17, 2026 and Apri 19, 2028 respectively, according to the pricing supplement, which was filed with Bank Negara Malaysia's Fully Automated System for Issuing/Tendering (FAST) website.

"The proceeds from the Sukuk Wakalah shall be utilised for Bank Rakyat's Shariah-compliant business expansion programme, general banking, working capital and general corporate purposes.

"(For the issuer Imtiaz Sukuk,) the proceeds from the Sukuk Wakalah issued under the Sukuk Wakalah programme shall be used to invest in a portfolio comprising the Commodity Murabahah Investment and Shariah-compliant business," the document said.

Bank Muamalat Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint lead managers for the Sukuk Wakalah programme, according to the document.

According to the Bank Rakyat's website, the group is the biggest Islamic cooperative bank in Malaysia with assets totalling RM109.62 billion as at end-December 2019.

"Bank Rakyat was established on Sept 28, 1954 under the Cooperative Ordinance 1948 (known as the Cooperative Societies Act 1993)," Bank Rakyat said.

Edited BySurin Murugiah
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