RHB Islamic targets RM5bil with sukuk programme

PETALING JAYA: RHB Bank Bhd's wholly-owned subsidiary, RHB Islamic, aims to raise up to RM5bil from a Sukuk Wakalah Programme that has been lodged with the Securities Commission.

In a filing with Bursa Malaysia, the banking group noted the Sukuk Wakalah Programme will allow the issuer to issue Senior Sukuk Wakalah, Tier-2 subordinated Sukuk Wakalah and/or Additional Tier-1 Capital Sukuk Wakalah in multi-currency including ringgit.

The Tier-2 Subordinated Sukuk Wakalah and Additional Tier-1 Capital Sukuk Wakalah are intended to qualify respectively as Tier-2 and Additional Tier-1 capital of the Issuer and shall comply with the Capital Adequacy Framework for Islamic Banks issued by Bank Negara.

RHB noted the proceeds raised from the sukuk programme shall form part of its Shariah-compliant working capital, general banking purposes and/or refinancing of their outstanding Islamic financings or Shariah-compliant capital instruments.

The Sukuk Wakalah programme shall also allow the Issuer to issue Sukuk Wakalah which will be in compliance with the guiding principles of RHB’s Sustainability Sukuk and Bond Framework.

"The proceeds from the issuances of Sustainability Sukuk Wakalah will be used to finance and/or refinance, in whole or in part, new or existing Shariah-compliant assets, businesses, projects and/or products that promote the eligible categories as defined under the RHB’s Sustainability Sukuk and Bond Framework," the bank stated in its filing.