(i) Redemption Of Tier 2 Subordinated Sukuk Murabahah Of RM2.0 Billion In Nominal Value ("RM2.0 Billion Subordinated Sukuk Murabahah") Pursuant To The Sukuk Programme Of Up To RM30.0 Billion (Upsized From RM10.0 Billion) In Nominal Value ("Sukuk Programme"); And (ii) Issuance Of Tier 2 Subordinated Sukuk Murabahah Of RM3.0 Billion In Nominal Value ("rm3.0 Billion Subordinated Sukuk Murabahah") Under The Sukuk Programme.

Jan 31, 2024 Back

 

Type Announcement
Subject OTHERS
Description MALAYAN BANKING BERHAD ("MAYBANK")
(I) REDEMPTION OF TIER 2 SUBORDINATED SUKUK MURABAHAH OF RM2.0 BILLION IN NOMINAL VALUE ("RM2.0 BILLION SUBORDINATED SUKUK MURABAHAH") PURSUANT TO THE SUKUK PROGRAMME OF UP TO RM30.0 BILLION (UPSIZED FROM RM10.0 BILLION) IN NOMINAL VALUE ("SUKUK PROGRAMME"); AND

(II) ISSUANCE OF TIER 2 SUBORDINATED SUKUK MURABAHAH OF RM3.0 BILLION IN NOMINAL VALUE ("RM3.0 BILLION SUBORDINATED SUKUK MURABAHAH") UNDER THE SUKUK PROGRAMME.

We refer to our earlier announcement dated 14 December 2016 in relation to the establishment of the Sukuk Programme, the announcement dated 31 January 2019 in relation to the issuance of the RM2.0 billion Subordinated Sukuk Murabahah pursuant to the Sukuk Programme, the announcement dated 25 September 2019 in relation to the revision of the Sukuk Programme and the announcement dated 5 August 2021 in relation to the upsizing and further revision to the Sukuk Programme.

 

On behalf of the Board of Directors of Maybank, Maybank Investment Bank Berhad is pleased to announce the following:

(a) Maybank has, on 31 January 2024, fully redeemed the RM2.0 billion Subordinated Sukuk Murabahah on its first call date. The RM2.0 billion Subordinated Sukuk Murabahah were issued on 31 January 2019; and

(b) Maybank has, on 31 January 2024, completed the issuance of the RM3.0 billion Subordinated Sukuk Murabahah under the Sukuk Programme.

 

The details of the RM3.0 billion Subordinated Sukuk Murabahah issuance are summarized as follows:

(a) Issuer Malayan Banking Berhad
(b) Issue Date 31 January 2024
(c) Series No. 009
(d) Nominal Amount RM3.0 billion
(e) Tenure 10 years on a 10 non-callable 5 basis
(f) Maturity Date 31 January 2034
(g) Call Date Callable on the fifth (5th) anniversary date from the Issue Date and on every periodic profit payment date thereafter with the first call date on 31 January 2029
(h) Yield-to-Maturity / Initial Profit Rate 4.03% per annum
(i) Details on Utilisation of Proceeds

The proceeds from the Subordinated Sukuk Murabahah issued under the Sukuk Programme will be applied for the following Shariah-compliant purposes:

(i) to fund the Issuer’s investments in Ringgit-denominated and foreign currency-denominated Islamic financial instruments approved by Bank Negara Malaysia’s Shariah Advisory Council or the Securities Commission Malaysia’s Shariah Advisory Council;

(ii) funding of Islamic business activity of Maybank’s subsidiaries and overseas branches; and

(iii) any other Shariah-compliant business activities of the Issuer,

where the returns from such investments shall be used for the periodic profit payment of the Subordinated Sukuk Murabahah.

In addition, any such returns with an amount higher than the periodic profit payment (at that point in time) can be used for purposes as per items (i), (ii) and (iii) above.
(j) Rating AA1 (RAM Rating Services Berhad) 
(k) Periodic Payment Period Semi-annual

 

The RM3.0 billion Subordinated Sukuk Murabahah will qualify as Tier 2 capital of Maybank in accordance with Bank Negara Malaysia’s Policy Document on Capital Adequacy Framework (Capital Components) issued on 15 December 2023.

 

This announcement is dated 31 January 2024. 

Announcement Info

Company Name MALAYAN BANKING BERHAD
Stock Name MAYBANK
Date Announced 31 Jan 2024
Category General Announcement for PLC
Reference Number GA1-30012024-00091