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The Islamic Development Bank (IDB) today listed its RM1.0 billion sukuk Medium Term Note (MTN) Programme on Bursa Malaysia, marking the first multilateral development bank to list its Ringgit sukuk MTN Programme on the Exchange. The sukuk was issued via IDB's special purpose vehicle, Tadamun Services Berhad and it is the inaugural sukuk by IDB to be issued in local currency.
This RM1.0 billion sukuk MTN Programme has a tenure of 10 years and is rated AAA by Standard & Poor's. The proceeds raised from sukuk issued under this MTN Programme will be used for general corporate purposes relating to IDB's business activities.
Dato' Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said, "This Ringgit sukuk MTN Programme listing by the first foreign multilateral issuer on Bursa Malaysia signifies an important milestone in the development of the Islamic capital market. We already made inroads in the sukuk market and today's listing of IDB's sukuk MTN programme further reinforces Malaysia's leadership position as the world's largest Sukuk issuance centre. We encourage more issuers to follow IDB's footsteps and take advantage of the opportunities and benefits that Bursa Malaysia can offer for fund raising activities."
In his speech, Dr. Abdul Aziz Al-Hinai, Vice President of Finance of IDB said, "The listing of IDB's sukuk MTN Programme on Bursa Malaysia today is a testament of our commitment to support the Islamic finance market, in this case, the Islamic debt capital market in Malaysia. I am very proud to have collaborated with Bank Negara Malaysia, the Securities Commission of Malaysia and Bursa Malaysia, as well as CIMB Group in their efforts to support the nation as an international Islamic financial centre."
With this listing, Bursa Malaysia's sukuk listings recorded a total of USD21.7 billion worth of sukuk programmes with 16 sukuk listed by 14 issuers, from which three of them are foreign issuers.
Dato' Yusli added, "There is a growing interest for foreign issuers to list Shar'iah financial instruments on the Malaysian market. Without a doubt, this sukuk listing by IDB will augur well for our goal to further position Malaysia as a premier Islamic investment and sukuk listing hub in tandem with the Malaysia International Islamic Financial Centre (MIFC)'s initiatives to push our Islamic capital market's standing on the global map."
IDB's Ringgit sukuk MTN Programme is listed under the Exempt Regime basis and is therefore, not exchange traded. ‘Exempt regime' means that debt securities or sukuk issued under the Programme that is listed on the Exchange will not be quoted or traded on the Exchange.
Meanwhile, Badlisyah Abdul Ghani, Executive Director and Chief Executive Officer, CIMB Islamic Bank pointed out, "While we expect more issuers to list their sukuk on Bursa Malaysia, we also hope more foreign issuers would issue sukuk out of Malaysia, as we have arguably the best capabilities and expertise, backed by the most comprehensive and sophisticated Islamic debt capital market in the world."
CIMB Islamic Bank is the listing adviser for this listing exercise.
