Alliance Bank issues RM130m sukuk

PETALING JAYA: Alliance Islamic Bank Bhd, a wholly-owned subsidiary of Alliance Bank Bhd (ABMB), has completed its first issuance of subordinated murabahah of RM130 million in nominal value.

The subordinated sukuk issuance has a tenure of 10-years non-callable five-years with a profit rate of 5.5% per annum.

The sukuk programme is part of Alliance Financial Group Bhd’s proposed subordinated sukuk murabahah programme of up to RM180 million in nominal value under the syariah principle of murabahah via tawarruq arrangement.

The subordinated sukuk issued under the sukuk programme will qualify as Basel III compliant Tier 2 regulatory capital of Alliance Islamic in accordance with the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara Malaysia () on Aug 4, 2017. The approval from for the subordinated sukuk issuance had been obtained on Aug 24, 2017.

ABMB shares closed 2.63% higher at RM3.90 on Friday with 611,000 shares traded.

Source: The Sun Daily

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