Bank Rakyat Issues RM300 Mln Tier-2 Subordinated Sukuk Issuance

KUALA LUMPUR, June 19 (Bernama) -- Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has issued a RM300 million tier-2 subordinated sukuk Murabahah via a special purpose vehicle, Mumtaz Rakyat Sukuk Bhd.

In a statement today, Bank Rakyat said the issuance was made through the book-building process on June 8, 2026 under its subordinated sukuk Murabahah programme of up to RM5 billion, which has been assigned a rating of AA3 by RAM Rating Services Bhd.

It said the sukuk, which qualified as tier-2 capital under Bank Negara Malaysia’s Policy Document on the Capital Adequacy Framework for Islamic Banks Capital Components, was issued as a 10-year tranche.

“Due to the overwhelming order from the investors, the bank managed to garner demand for its tier-2 subordinated sukuk Murabahah with a high bid-to-cover of 2.83 times before settling at 1.78 times of the total issue size.

“The proceeds shall be utilised for Shariah-compliant purposes, which include working capital requirements, capital expenditure, general investments, providing financing and other general corporate purposes,” it added.

Bank Rakyat said Maybank Investment Bank Bhd and AmInvestment Bank Bhd were appointed as the joint lead managers for the subordinated sukuk Murabahah programme.

-- BERNAMA