Lender issues RM500m sukuk
KUALA LUMPUR: Public Bank Bhd’s wholly-owned subsidiary, Public Islamic Bank Bhd, has issued a second tranche of the subordinated sukuk murabahah worth RM500 million under the sukuk murabahah programme.
In its filing with Bursa Malaysia, the bank said the proceeds will qualify as Tier 2 regulatory capital for Public Islamic Bank as well as Public Bank and its subsidiaries in accordance with the Capital Adequacy Framework for Islamic banks (Capital Components) issued by Bank Negara Malaysia.
“The proceeds of the subordinated sukuk murabahah would be made available to Public Islamic Bank without limitation for its working capital, general banking and other corporate purposes, all of which would be syariah-compliant,” it said.
RAM Rating Services Bhd has assigned a final long-term rating of “AA1” to the subordinated sukuk murabahah.
Public Bank says sukuk proceeds will qualify as Tier 2 regulatory capital for Public Islamic Bank as well as Public Bank and its subsidiaries.