Regulators approve Public Islamic Bank RM5b sukuk

PETALING JAYA: Public Bank Bhd's (PBB) unit, Public Islamic Bank Bhd (PIBB), has obtained regulatory approvals for its planned RM5 billion sukuk programme.
In a filing with Bursa Malaysia yesterday, the bank said it obtained approvals from Bank Negara Malaysia (BNM) and the Securities Commission (SC) on March 24 and April 21 respectively, to establish an Islamic medium term notes programme under the Murabahah principle.
"The subordinated sukuk Murabahah to be issued from time to time under the sukuk Murabahah programme will qualify as Tier 2 capital for the computation of the regulatory capital of PIBB and PBB Group in accordance with the Capital Adequacy Framework (Capital Components) for Islamic Banks issued by BNM," it said.
The sukuk is up to 30 years from the date of first issuance.
RAM Rating Services Bhd has assigned respective long-term ratings of AAA and AA1 to the senior sukuk Murabahah and subordinated sukuk Murabahah under the programme.
Public Investment Bank Bhd is the lead arranger and manager while Amanie Advisors Sdn Bhd is the shariah advisor in respect of the programme.