PETALING JAYA: BIMB Holdings Bhd’s wholly-owned subsidiary Bank Islam Malaysia Bhd has issued the second tranche of the Subordinated Sukuk Murabahah amounting to RM400 million under the Subordinated Sukuk Murabahah Programme. In a filing with Bursa Malaysia yesterday, BIMB said the second tranche has a tenure of 10 years non-callable five years, with its maturity date being Dec 15, 2025. The sukuk has been rated A1/stable by RAM Rating Services Bhd. “The proceeds shall be utilised to finance Bank Islam’s Islamic banking activities, working capital requirements and other corporate purposes and/or, if required, to redeem any outstanding Subordinated Sukuk Murabahah issued under the Subordinated Sukuk Murabahah Programme. In any case, all utilisation of proceeds shall be syariah-compliant,” it said. The Subordinated Sukuk Murabahah issued under the Subordinated Sukuk Murabahah Programme shall qualify as Tier 2 regulatory capital of Bank Islam in compliance with Bank Negara Malaysia’s (BNM) Capital Adequacy Framework for Islamic Banks (Capital Components). Hence, it will enhance the capital adequacy of the bank in line with the requirements under Basel III. To recap, Bank Islam obtained approvals from BNM and the Securities Commission Malaysia on Oct 10, 2014 to establish the Subordinated Sukuk Murabahah Programme. The first tranche amounting to RM300 million was issued on April 22.