|CIMB Islamic Lists RM2 Billion Sukuk On Bursa Malaysia
KUALA LUMPUR, Dec 29 (Bernama) -- CIMB Islamic Bank Bhd's Tier 2 Junior Sukuk Programme of up to RM2.0 billion in nominal value was admitted to the main market of Bursa Malaysia Tuesday under an exempt regime.
"The listing of our Islamic sub-debt on Bursa Malaysia further strengthens our commitment to the development of the Islamic finance industry, in this case, the Islamic debt capital market," said CIMB Islamic chief executive officer Badlisyah Abdul Ghani.
"Though not a retail offering as yet, we hope this listing will be a precursor to the development of a vibrant retail sukuk market tradable on Bursa Malaysia," he said in a statement.
Malaysian Rating Corporation Bhd (MARC) has assigned an initial rating of 'AA'IS to the CIMB Islamic Bank Junior Sukuk Programme -- one notch lower than MARC's assigned long-term financial institution rating on CIMB Islamic of 'AA '.
The corporate debt rating reflects the subordinated position of the Junior Sukuk relative to the bank's deposits as well as senior unsecured debt.
The first issue of CIMB Islamic's Junior Sukuk Programme amounting to RM300 million was made on Sept 25, 2009. It carries a coupon rate of 5.85 per cent and matures on Sept 25, 2024.
Exempt regime means that the sukuk will not be quoted or traded on the exchange.
Meanwhile, Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said in the same statement that CIMB Islamic's listing marks a milestone for the exchange as it was the first Islamic financial institution to list its sukuk.
"This move signifies the relevance and appeal of Bursa Malaysia to bigger players in the Islamic finance industry, as well as boosts investor confidence," he said.
The statement said Bursa Malaysia registered its first sukuk and bond listings by Petronas and Cagamas in August this year, followed by GE Capital's non-ringgit sukuk listing in November.
The investor-friendly regime coupled with a robust regulatory and Shariah framework has been a conducive platform for sukuk listings and issuance. This enables Malaysia to attract over 60 per cent of worldwide sukuk issuances, making this country a global hub for Islamic finance and investments.