Bank Rakyat Malaysia Bhd, via its funding conduit, Mumtaz Rakyat Sukuk Bhd, has launched its maiden Basel III-compliant Tier 2 Subordinated Sukuk Murabahah Programme of up to RM5 billion with a tenure of 20 years. Pix by ZUNNUR AL SHAFIQ

KUALA LUMPUR: Bank Rakyat Malaysia Bhd, via its funding conduit, Mumtaz Rakyat Sukuk Bhd, has launched its maiden Basel III-compliant Tier 2 Subordinated Sukuk Murabahah Programme of up to RM5 billion with a tenure of 20 years.

Bank Rakyat chairman Tan Sri Abdul Aziz Zainal said the launch of the subordinated sukuk programme marks another milestone for Bank Rakyat, as it will be the first Basel III-compliant Tier 2 capital Subordinated Sukuk Programme to be issued by a development financial institution in Malaysia.

"In line with Bank Rakyat's strategy, the establishment of the Subordinated Sukuk Programme will be a strategic platform to further support the readiness of the bank to adhere to Basel III requirements," Abdul Aziz said at the launch here today.

Abdul Aziz said the proceeds from the Sukuk issuance will be utilised towards Bank Rakyat's Shariah-compliant business expansion programme, general banking, working capital and general corporate purposes.

The principle adviser and lead arranger for the Subordinated Sukuk Programme is Maybank Investment Bank Bhd (Maybank IB), while the joint lead managers are AmInvestment Bank Bhd and Maybank IB.

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