AmIslamic obtains approval from for sukuk of up to RM3b

PETALING JAYA (Feb 13, 2014): AMMB Holdings bhd's unit AmIslamic Bank Bhd has obtained approval from Bank Negara Malaysia and the Securities Commission to establish a subordinated sukuk murabahah programme of up to RM3 billion.
In a filing to the exchange, AMMB said the programme is structured in accordance with the capital adequacy framework for Islamic banks issued by the central bank on November 28, 2012 and the subordinated sukuk murabahah issued from time to time will qualify as Tier 2 capital of AmIslamic.
Under the programme, it said AmIslamic is given the flexibility to issue subordinated sukuk murabahah during the availability period of the programme based on the funding requirements of AmIslamic.
It said the programme has a tenor of up to 30 years from the date of the first issuance of the subordinated sukuk murabahah.
Each tranche of the subordinated sukuk murabahah to be issued shall have a tenor of at least five years subject to their maturing on or prior to the expiry of the programme.
According to AMMB, RAM Rating Services Bhd has assigned a preliminary long-term rating of AA3 to the subordinated sukuk murabahah under the programme.
AmInvestment Bank Bhd, the investment banking subsidiary of AMMB, is the principal adviser, lead arranger, lead manager, facility agent and shariah adviser (backed by AmIslamic's Shariah Committee), on a joint-role basis with Amanie Advisors Sdn Bhd for the programme.