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Bursa Malaysia welcomed Exchange Traded Bonds and Sukuk’s (ETBS) debut listing on the stock exchange today. The listing came after a month of subscription period which began on 8 January 2013, during which time the retail sukuk was open for public/retail investment till book closing on 25 January 2013.
As the first retail sukuk in the country, ETBS is a financial product that is traded just like shares on the stock market. It is a fixed income security providing a stable and predictable dividend, paid over regular intervals.
The maiden issuance of ETBS by DanaInfra Nasional Berhad is worth RM300 million with a 10 year maturity period. It is to partly finance the on-going Mass Rapid Transit project from Kajang to Sungai Buloh.
A minimum of RM1,000 is needed as capital to start investing.
At the listing ceremony, Bursa Malaysia Chief Executive Officer, Dato’ Tajuddin Atan said, “The consummation of today’s listing gives us a sense of achievement as it is the actualisation of the first retail bond or sukuk to be listed on the Exchange”.
“For far too long, bonds have remained the exclusive domain of institutional investors and high net worth individuals, never offered at the retail consumers’ level. But with the introduction of this new asset class, all this has changed," he said.
He said ETBS is an innovation in capital market, and being tailored to the everyday folks with affordable pricing mattered greatly.
“Also, the listing of ETBS today will pave the way for future issuances by other government concerns or private entities which may venture into this mode of fund raising,” he said.
Dato’ Tajuddin said, “Today, sukuk continues to receive global attention and gain wide acceptance as an important tradable investment product. In line with this development, it is our foremost aim to turn it into a crucial mainstream investment instrument in the long term and at the same time, ensure the country stays as the hub for all these products.”
