Bank Muamalat targets up to RM40b investments via Ar-Rahn

KUALA LUMPUR: Bank Muamalat Malaysia Bhd is targeting accumulated investment worth between RM30 million and RM40 million through its Project ArRahn on the Investment Account Platform for the year ending March 31 2018.

The platform is operated by IAP Integrated Sdn Bhd.

Bank Muamalat chief executive officer Datuk Mohd Redza Shah Abdul Wahid said it recently invested RM20 million in Project Ar-Rahn, which is scheduled to commence on October 13 and will run for six months.

“We expect to generate a return of 7.50 per cent per annum to investors. This is the highest return rate offered to investors and the shortest tenured-investment on IAP,” he said during a signing ceremony between Muamalat Venture Sdn Bhd (MVSB) and IAP integrated, here, yesterday.

Project Ar-Rahn is an investment in MVSB under a joint venture between Bank Muamalat and Permodalan Kelantan Bhd.

Redza said the project had received an overwhelming response from institutional and retail investors.

“Within a short period, the investment has been overbooked by more than 1.20 times.”

Its investors segment includes transportation, cooperatives loan and computer rentals.

Bank Muamalat chairman Tan Sri Munir Majid said the listing of Project Ar-Rahn marked another milestone for the bank and IAP.

“We continue to embark on important initiatives that aim at broadening the traditional role of Islamic banking institutions from a credit provider to an investment intermediary,” he said.

“All ventures listed on the platform are independently rated by a professional rating agency that further facilitates informed investment decision-making by investors,” he added.

IAP is a centralised multi-bank platform initiative spearheaded by a consortium of six Malaysian Islamic financial institutions to market investment account products.

IAP represents a new financing option for entrepreneurs with viable projects, and provides opportunities for the private sector as well as the investing public to finance these projects. Ayisy Yusof