Maybank Islamic Berhad ("Maybank Islamic"), the largest Islamic financial institution in Malaysia issued its maiden Tier 2 Capital Islamic Subordinated Sukuk of RM1.0 billion ("Subordinated Sukuk") on 31 March 2011.
The Subordinated Sukuk which is based on the Islamic principle of Musyarakah, is rated AA+IS (outlook stable) by Malaysian Rating Corporation Berhad (MARC) and carries a tenure of 10 years from the issue date on a 10 non-callable 5 basis. It is lead arranged by Maybank Investment Bank Berhad.
"We are pleased that the Subordinated Sukuk has received overwhelming response from investors," says Dato' Sri Abdul Wahid Omar, our President and CEO. The RM1.0 billion Subordinated Sukuk will qualify as Tier 2 capital for Maybank Islamic for the purpose of Malaysian capital adequacy regulation.
"This is the largest single Ringgit Subordinated Sukuk issuance by an Islamic Financial Institution to date. Proceeds raised from the Subordinated Sukuk would position Maybank Islamic for stronger growth domestically and regionally," added Dato' Sri.