RHB Islamic Bank Berhad, has lodged a multi-currency Sukuk Wakalah Programme with the Securities Commission Malaysia, allowing the issuance of Sukuk worth up to RM5 billion or its equivalent in other currencies.
The programme, based on the Shariah principle of Wakalahl Bi Al-Istithmar, will enable RHB Islamic to issue Senior Sukuk Wakalah, Tier-2 Subordinated Sukuk Wakalah, and Additional Tier-1 Capital Sukuk Wakalah. Tier-2 and Additional Tier-1 Sukuk under the programme are intended to qualify as regulatory capital instruments under Bank Negara Malaysia’s Capital Adequacy Framework for Islamic Banks (CAFIB).
Proceeds from the Sukuk issuance, excluding Sustainability Sukuk Wakalah, will be used for Shariah-compliant working capital, general banking purposes, or refinancing of existing Islamic financing or capital instruments.
The programme also allows for Sustainability Sukuk Wakalah issuance in line with RHB’s Sustainability Sukuk and Bond Framework. These sukuk will finance or refinance Shariah-compliant assets, businesses, projects, or products aligned with environmental, social, and sustainability objectives, following guidelines such as ASEAN Green, Social, and Sustainability Bond Standards and the International Capital Market Association’s Green and Social Bond Principles.
RHB Investment Bank Berhad will act as Principal Adviser, Lead Arranger, and Lead Manager for the programme. The Sukuk Wakalah Programme provides flexibility for RHB Islamic to issue instruments in multiple currencies at any time, subject to the aggregate nominal value cap of RM5 billion, with the option to increase the programme limit in the future.
Source: businesstoday.com.my
