MBB Sukuk Inc. today listed its US$300 million Islamic Subordinated Sukuk on Labuan International Financial Exchange (LFX). The Subordinated Sukuk was structured on a 10 Non-Call 5-year basis due in 2017 but callable with step-up in the profit rate in 2012. The Subordinated Sukuk will qualify as Tier-2 Capital for Malayan Banking Berhad. The Subordinated Sukuk, rated BBB+ by Fitch Ratings and Standard & Poors and Baa1 by Moody’s Investors Service, was oversubscribed by more than 7 times, indicating strong demand for Sukuk by global investors.
The Subordinated Sukuk has a maturity of 10 years from the issue date with an option that allows Malayan Banking Berhad (Maybank), as the obligor to redeem in whole but not in part the Subordinated Sukuk. The proceeds raised from the Subordinated Sukuk will be utilized to fund Maybank Group’s Islamic banking operations and for general Islamic banking purposes.
“Today’s listing is a testimony that Malaysian issuers continue to innovate in Sukuk origination and LFX is proud to be part of this innovation. With the high demand of Sukuk and the attractive incentives offered by Malaysia International Islamic Financial Center (MIFC), more local and foreign issuers should choose Malaysia to originate and list their Sukuks,” said LFX Board Member, Dato’ Yusli Mohamed Yusoff who is also the Chief Executive Officer of Bursa Malaysia Berhad.
“Additionally, the listing of the US$300 million Islamic Subordinated Sukuk will serve to encourage more issuers and take advantage of the opportunities and benefits that LFX offers for fund raising activities.” The listing sponsor for the US$300 million Islamic Subordinated Sukuk is Aseambankers Malaysia Berhad (ASEAM). This is also ASEAM’s maiden listing of a financial instrument on LFX. In addition to being the listing sponsor, ASEAM also acted as the Joint Lead Manager and Joint Bookrunners with Hongkong and Shanghai Banking Corporation Limited, Offshore Banking Unit (Labuan) and UBS AG (Labuan Branch) for the issue.
