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Bursa Malaysia achieved another milestone with facilitating the issuance of the Malaysian Government's Sukuk 1Malaysia through its Shari'ah compliant trading platform, Bursa Suq Al-Sila'. The sum, RM2.4 billion, is the single largest transaction since the launch of the world's first, end-to-end Shari'ah-compliant commodity trading platform in August 2009.
Sukuk 1Malaysia which is issued by Bank Negara Malaysia, on behalf of the Malaysian Government , is an additional investment instrument for Malaysian citizens who are 21 years and above. The sukuk has a 3-year tenure and offers a return of 5% per annum. The sukuk is structured as a Murabahah sukuk using Crude Palm Oil as the Murabahah commodity to be traded trough Bursa Suq Al-Sila'.
Bursa Malaysia's Chief Executive Officer, Dato' Yusli Mohamed Yusoff said that the Exchange was pleased to facilitate the issuance of the Sukuk 1Malaysia by facilitating the purchase and re-sale of the commodities through Bursa Suq Al-Sila. "This development reinforces the appeal of the trading platform in facilitating Shari'ah financing. We are pleased that the Malaysian Government's choice in using Bursa Suq Al-Sila' is further testament to the country's commitment in the development of Islamic Finance."
The platform operates as a hybrid market based on a fully-electronic trading system coupled with the traditional voice broking facility. It is an international platform that is able to facilitate cross border multi-currency commodity-based Islamic financing and investment transactions under the Shari'ah principles of Murabahah, Tawarruq and Musawwamah.
Dato' Yusli added that Bursa Malaysia also looks forward to admitting more Commodities Supplying Participants (CSPs) on Bursa Suq Al-Sila' to expand commodities offerings on the platform from just crude palm oil. "We believe that this will increase the attractiveness of Bursa Suq-Al-Sila' and result in mutually beneficial returns to all parties."
