KUALA LUMPUR (March 24): Bank Islam Malaysia Bhd (KL:BIMB) said on Monday it has issued the seventh tranche of subordinated sukuk murabahah or Islamic bond that amounted to RM250 million under its RM10 billion sukuk murabahah programme, which was lodged with the Securities Commission Malaysia in September 2018.

The sukuk, which has a 10-year tenure and will be redeemed at its full nominal value upon maturity, comes with a call option on its fifth anniversary, according to BIMB in a statement. The annual profit rate of the sukuk was not specified.

"The sukuk murabahah shall qualify as Tier 2 regulatory capital of Bank Islam in compliance with Bank Negara Malaysia’s Capital Adequacy Framework for Islamic Banks (Capital Components). Hence, it will enhance the capital adequacy of Bank Islam in line with the Basel III requirements," said BIMB.

The sukuk has been rated A1/stable by RAM Rating Services Bhd. Bank Islam is the principal adviser, lead arranger, lead manager and shariah adviser for the sukuk programme. 

Bank Islam’s shares closed two sen or 0.8% higher at RM2.52 on Monday, valuing the bank at RM5.71 billion.