LPPSA boosts sukuk issuance size to RM50 billion

KUALA LUMPUR: The Public Sector Housing Financing Board (LPPSA) has issued RM50 billion worth of sukuk as part of its Islamic commercial papers (ICP) and Islamic medium term notes (IMTN) programme.

In an announcement on the Fully Automated System for Issuing/ Tendering (FAST) platform, facility agent CIMB Investment Bank said the facility is an upsized ICP and IMTN issuance programme, which together with upsized conventional commercial papers and conventional medium term notes, and a syndicated Islamic revolving credit-i facility and syndicated revolving credit/term loan facilities, have an aggregate combined limit of up to RM50 billion in nominal value.

The government on September 22 approved LPPSA’s proposed upsizing of the CP/MTN programme and the ICP/MTN Programme from up to RM25 billion previously.

The sukuk are all irrevocably and unconditionally guaranteed by the government.

According to the announcement,

AmInvestment Bank Bhd, Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, OCBC Bank (Malaysia) Bhd and RHB Investment Bank Bhd are the joint lead managers and book runners for the sukuk’s book-building exercise.

RHB Islamic Bank Bhd is the shariah adviser.

As at 4 pm, Bank Negara Malaysia conducted RM36.70 billion in conventional money market tender and RM11.10 billion for Murabahah money market tender, both for one day money. — Bernama