By Marisa Wong
Morgantown, W.Va., Nov. 13 – Malaysia’s BIMB Holdings Bhd. said wholly owned subsidiary Bank Islam Malaysia Bhd. issued a third tranche of subordinated sukuk totaling RM 300 million.
The 10-year sukuk are non-callable for five years.
The subsidiary obtained approval to establish an up to RM 1 billion subordinated sukuk program in October 2014. Sukuk issued under the 30-year program will qualify as tier 2 capital. Each tranche will have a tenor of at least five years and up to 30 years, as previously noted.
Bank Islam Malaysia is the adviser, lead arranger and facility agent for the sukuk program, which has been assigned a long-term rating of A1 by RAM Rating Services Bhd.
The bank completed its first tranche of sukuk, totaling RM 300 million, on April 22, 2015 and its second tranche, totaling RM 400 million, on Dec. 15, 2015.
Proceeds from the third tranche will be used to finance the bank’s banking activities, working capital requirements and other corporate purposes, as well as to redeem any outstanding sukuk under the subordinated sukuk program.
BIMB is an investment holding company based in Kuala Lumpur.
| Issuer: | Bank Islam Malaysia Bhd.
|
| Issue: | Subordinated sukuk, third tranche
|
| Amount: | RM 300 million
|
| Maturity: | Nov. 12, 2027
|
| Call option: | Non-callable for five years
|
| Settlement date: | Nov. 13
|
| Rating: | RAM Rating: A1
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
