UOB Malaysia fixes RM750mil sukuk profit rate at 3.85pct
The sukuk is part of UOB Malaysia's RM5 billion sukuk wakalah programme, established in January 2024 under the Shariah principle of Wakalah Bi Al-Istithmar.
Initially targeted at RM500 million, the Tier 2 sukuk wakalah offering was upsized to RM750 million following strong demand from a diverse group of more than 20 high-quality investors, the bank said.
They included including insurance companies, fund managers, government-linked investment companies, banks and private banks.
The Tier 2 sukuk wakalah was fixed at a profit rate of 3.85 per cent per annum, representing a spread of 36 basis points above the seven-year benchmark Malaysian Government Securities (MGS).
The sukuk is scheduled to be issued on July 3 and matures on July 3, 2037, with an optional redemption on July 2, 2032.
UOB Malaysia chief executive officer Ng Wei Wei said the bank is pleased that the second tranche of its sukuk wakalah programme has been met with such strong investor interest, following the success of its debut issuance last year.
"The upsized issuance reflects continued confidence in UOB Malaysia's credit strength and long-term strategic direction.
"It also reflects the depth and maturity of Malaysia's Islamic debt capital market, which continues to attract a diverse and high-quality investor base.
"This outcome affirms both the resilience of Malaysia's financial system and the enduring strength of the country's strong economic fundamentals," she added.
Rated AA1 by RAM Ratings, the Tier 2 sukuk wakalah is intended to qualify as UOB Malaysia's Tier 2 capital on a consolidated basis under Bank Negara Malaysia's Capital Adequacy Framework for Islamic Banks (Capital Components).
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