KUALA LUMPUR: Bank Muamalat Malaysia Bhd's RM500 million subordinated sukuk murabahah received a positive response from diversified investors during its book-building exercise.
Chief executive officer Khairul Kamarudin said the second issuance under the subordinated sukuk murabahah programme reflects the market's confidence in the bank's strong fundamentals and strategic direction.
Khairul said the RM500 million subordinated sukuk murabahah, which will be issued on June 15, 2021, was competitively priced during the book-building exercise recently.
"The book managed to register a final bid-to-cover of 1.40 times (pre-final price fixing) and 1.28 times (post-final price fixing) over the proposed issue size with inclusion of unexpected new investors during the day.
"The joint lead managers received diversified orders from various types of investors including financial institutions, non-financial institutions, asset management companies, government agencies, takaful/insurance companies and high net worth investors," he said.
Khairul said proceeds raised from the sukuk would be utilised for the bank's Islamic banking activities and working capital requirements.
"This will put the bank on a stronger footing and help steer the bank's growth in the post-pandemic landscape," he said.
Bank Muamalat is the principal adviser and lead arranger jointly with OCBC Al-Amin Bank for the programme.