PETALING JAYA: Alliance Bank Malaysia Bhd’s wholly owned subsidiary Alliance Islamic Bank Bhd is establishing sukuk programmes of up to RM2.8 billion.
In a filing with Bursa Malaysia, the bank said it has lodged with Securities Commission Malaysia a perpetual sukuk programme of up to a global limit of RM2.5 billion and an Islamic commercial papers programme (ICP programme).
The sukuk programme comprises the issuance of a senior sukuk murabahah of up to RM1.2 billion (senior sukuk), Islamic Tier 2 sukuk murabahah of up to RM800 million (T2 sukuk) and Islamic additional Tier 1 sukuk wakalah of up to RM500 million (AT1 sukuk).
Meanwhile, the ICP programme comprises the issuance of sukuk murabahah of up to RM300 million.
Proceeds of the sukuk programmes will be used for Alliance Islamic’s syariah-compliant general banking, working capital and other corporate purposes, including the refinancing of any financing incurred and/or any financing instruments issued by Alliance Islamic.
In addition, the AT1 sukuk and T2 sukuk are intended to qualify as Basel III-compliant Additional Tier 1 regulatory capital and Tier 2 regulatory capital respectively of Alliance Islamic in accordance with the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara Malaysia (BNM) on Feb 2, 2018.
Alliance Bank said approval from BNM for the establishment of the sukuk programme was received on Dec 6, 2018.
Alliance Investment Bank is the principal adviser, lead arranger, lead manager and facility agent for the sukuk programmes. Alliance Islamic is the syariah adviser for the sukuk programmes.
