KUALA LUMPUR: RHB Islamic Bank Bhd, a wholly owned subsidiary of RHB Bank Bhd, has inked a Sponsoring Bank Agreement with IAP Integrated Sdn Bhd, the owner and operator of the Investment Account Platform (IAP).
The signing ceremony sees RHB Islamic becoming the first non-shareholder sponsoring bank under the IAP, a joint regulatory-industry initiative spearheaded by a consortium of six Islamic banks.
The IAP will facilitate efficient intermediation by the sponsoring banks to match financing requirement of ventures with investment from retail and institutional investors via Investment Account.
RHB Islamic managing director and chief executive officer Datuk Adissadikin Ali said the partnership would bring tangible benefits to the IAP platform, as well as to its shareholders.
Adissadikin added that with the product development well underway for this year, RHB Islamic will ready itself to offer Investment Account Business to customers from 2018 onwards.
IAP Integrated chief executive officer Mohamed Izam Mohamed Yusof said the market could see more listing of ventures or projects on IAP in 2018, with the addition of RHB Islamic as a sponsoring bank.
Year 2016 saw three listed ventures on IAP namely Perak Transit Bhd, Kobimbing or Koperasi Kakitangan Kumpulan BIMB Holdings Bhd and ICT Zone Ventures Bhd with a total fund of RM20 million.
In 2017 thus far, IAP has had two listings where the first one was Specific Unrestricted Investment Account (SURIA) Fund of RM60 million and the second one was under a company called CMC Group that successfully raised RM12 million in early July this year.
Rating for IAP listed ventures or project is undertaken by RAM Solutions Sdn Bhd.
said IAP is expected to progress steadily over the next few years with more listing of assets, new sponsoring banks coming in and deals in foreign currencies.