Kuala lumpur: Malayan Banking Bhd (Maybank) has successfully completed the issuance of RM1.8 billion in subordinated Sukuk Murabahah under its RM30.0 billion Sukuk programme.

According to BERNAMA News Agency, Maybank disclosed in a Bursa Malaysia filing that the proceeds from this issuance will be allocated for Shariah-compliant purposes. These include funding Maybank's investments in ringgit-denominated and foreign currency-denominated Islamic financial instruments. These instruments are approved by Bank Negara Malaysia's Shariah Advisory Council or the Securities Commission Malaysia's Shariah Advisory Council.

Additionally, the funds will support the Islamic business activities of Maybank's subsidiaries and overseas branches, along with other Shariah-compliant business ventures of the issuer. The RM1.8 billion subordinated Sukuk Murabahah will be recognized as Tier 2 capital for Maybank, in line with Bank Negara Malaysia's Policy Document on Capital Adequacy Framework (Capital Components) set to be issued on June 14, 2024.

The tenure of the subordinated Sukuk Murabahah is set for 12 years, structured on a non-callable 7-year basis, with a maturity date slated for August 28, 2037.