RHB ISLAMIC ISSUES RM250M SUBORDINATED SUKUK

PETALING JAYA: RHB Bank Bhd’s wholly owned subsidiary RHB Islamic Bank Bhd has issued Subordinated Sukuk Murabahah amounting to RM250 million, in a bid to raise syariah-compliant working capital, which will also be utilised for general banking purposes. The sukuk, rated AA3 by RAM Rating Services Bhd, are issued for a tenure of 10 non-callable 5 years and comes with a fixed profit rate of 4.88% per annum, payable semi-annually in arrears throughout the entire tenure. “The Subordinated Sukuk Murabahah will qualify as Tier 2 capital of RHB Islamic subject to compliance with the requirements as specified in the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara Malaysia on Oct 13, 2015,” its board said in a filing with Bursa Malaysia.