Public sector home financing board issues RM3 billion sukuk

KUALA LUMPUR: The Public Sector Home Financing Board (LPPSA) yesterday issued its fourth Islamic Medium-Term Notes (IMTN) sukuk series worth RM3 billion.

In a statement yesterday, LPPSA said the IMTN formed a part of its RM25 billion Islamic commercial papers/IMTN programme, which is guaranteed by the Malaysian Government.

LPPSA, a fully independent statutory body established under the Home Financing Board Act 2015, said the strong demand for its sukuk was a testament to its credibility as a sukuk issuer in the market, backed by its strong and stable credit rating.

“The proceeds from the sukuk will be used to finance public sector housing and is available via bookbuilding processes and private placements,” it said.

The sukuk – which has a tenure of between five and 15 years – offered returns from 4.10 per cent to 4.54 per cent per annum throughout its tenure, it said.

The board said Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, OCBC Bank (M) Bhd and RHB Investment Bank Bhd had been appointed joint lead managers and joint book-runners for the book- building activity programme.

Meanwhile, CIMB Investment Bank Bhd would act as the facility agent, while RHB Islamic Bank Bhd would be the syariah advisor, it said. — Bernama