KUALA LUMPUR (April 15): Bank Kerjasama Rakyat Bhd (Bank Rakyat) has issued a Senior Islamic Medium Term Notes (Sukuk Wakalah) programme of up to RM10 billion via special purpose vehicle (SPV) Imtiaz Sukuk II Bhd.
The issuance is in relation to the issuance of RM300 million of Sukuk Wakalah (Series 3) and RM700 million of Sukuk Wakalah (Series 4) on April 19, Bank Rakyat added.
The issuance will be in tranches of RM300 million raised under the five-year notes with annualised return of 3.54%, and RM700 million under the seven-year term notes, with annualised return of 3.9%.
“The proceeds from the Sukuk Wakalah shall be utilised for Bank Rakyat’s Shariah-compliant business expansion programme, general banking, working capital and general corporate purposes,” it said in a statement.
Meanwhile for the issuer (Imtiaz Sukuk), proceeds from the Sukuk Wakalah issued under the programme shall be used to invest in a portfolio comprising the Commodity Murabahah Investment and Shariah Compliant Business.
Bank Muamalat Malaysia Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd have been appointed as the joint lead arrangers and joint lead managers, for the Sukuk Wakalah programme.
According to the Bank Rakyat’s website, the banking institution is the biggest Islamic cooperative bank in Malaysia with assets totalling RM92.29 billion as at end of December 2015.
