KUALA LUMPUR (April 21): RHB Bank Bhd said its wholly-owned subsidiary RHB Islamic Bank issued the subordinated sukuk murabahah of RM250 million on Thursday (April 21). 

The issuance of RM250 million is part of a RM5 billion subordinated sukuk murabahah programme by RHB Islamic Bank, according to RHB Bank’s filing with Bursa Malaysia. 

“The subordinated sukuk murabahah, rated AA3 by RAM Rating Services Bhd, is issued for a tenure of 10 years non-callable 5 years with a fixed profit rate of 4.06% per annum, payable semi-annually in arrears throughout the entire tenure,” said the banking group. 

It said the sukuk programme will qualify as Tier 2 capital of RHB Islamic Bank, subject to compliance with the requirements as specified in the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara Malaysia on Dec 9, 2020.

RHB Bank added that proceeds raised from the subordinated sukuk murabahah will be utilised for RHB Islamic Bank’s shariah compliant working capital and general banking purposes.

RHB Bank closed up four sen or 0.68% at RM5.92 on Thursday, valuing the group at RM24.53 billion.