Maybank Islamic issues Basel III-compliant sukuk

KUALA LUMPUR: Maybank Islamic Bhd has issued its maiden Basel III-compliant Tier-2 capital subordinated sukuk murabahah of RM1.5bil pursuant to a subordinated sukuk murabahah programme of up to RM10bil in nominal value established in March 2014.

The lead arranger and lead manager for the subordinated sukuk programme is Maybank Investment Bank Bhd.

Maybank Islamic chief executive officer Muzaffar Hisyam said it was the largest (single) issuance of ringgit by an Islamic Financial institution. “Proceeds raised from the subordinated sukuk murabahah can be used to augment the business of the bank thus positioning Maybank Islamic for stronger growth domestically and regionally,” he said in a statement.

The subordinated sukuk murabahah shall have a tenure of 10 years from the issue date on a 10 non-callable five basis. The RM1.5bil subordinated sukuk will qualify as Tier-2 capital of Maybank Islamic for the purpose of Bank Negara’s capital adequacy framework for Islamic banks.

(The Star Online / 09 April 2014)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia's Maybank launches Islamic asset management unit

The Islamic asset management sector is gradually making a comeback after years of stagnation, having seen a total of 88 funds liquidated globally in the past two years as slumping equity markets reduced investor interest.

Firms such as Britain's Threadneedle Investments, which set-up in Malaysia this month, now plan Islamic funds that screen their portfolios following religious guidelines such as bans on tobacco, alcohol and gambling.

The new unit would leverage the Maybank group's network of business lines, which range from consumer banking to Islamic insurance, as well as its geographical presence across Asia.

"The missing link within the Maybank group is Islamic asset management," Nor Azamin Salleh, chief executive of Maybank asset management said on Tuesday.

The new unit aims to launch Asian-themed investment funds using a bottom-up investment strategy, with products to be marketed primarily in Malaysia and Indonesia, Salleh said.

"We are looking at trying to bring an ASEAN plus North Asia product. Our approach is more on the ground, a bottom-up approach," he said.

Earlier this month, Maybank acquired Indonesian asset management firm PT GMT Aset Manajemen, and it would also explore opportunities in the Middle East through Maybank Investment Bank's stake in Saudi Arabia's Anfaal Capital, Salleh added.

(Reuters / 29 Oct 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com