RHB Islamic Bank issues RM250mil subordinated sukuk Murabahah

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RHB Islamic Bank, a wholly-owned subsidiary of RHB Bank Bhd, on Thursday issued subordinated Sukuk Murabahah of RM250 million in nominal value.

In a filing with the Bursa Malaysia, RHB Bank said this is part of a RM5 billion subordinated Sukuk Murabahah programme by the Islamic bank. “The subordinated Sukuk Murabahah, rated AA3 by RAM Rating Services Bhd, is issued for a tenure of 10 years non-callable five years with a fixed profit rate of 4.06 per cent per annum, payable semi-annually in arrears throughout the entire tenure,” it said.

The subordinated Sukuk Murabahah 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 said proceeds raised from the subordinated Sukuk Murabahah will be utilised for RHB Islamic Bank’s Shariah-compliant working capital and general banking purposes.—The Star

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