RHB issues RM900mil sukuk, RM500mil Tier-2 notes
In a filing with Bursa Malaysia today, the bank stated that the Senior Sukuk Murabahah is based on the Shariah Principle of Murabahah (via Tawarruq arrangement) and rated AA1/Stable by RAM Rating Services Bhd (RAM Ratings).
The Senior Sukuk Murabahah is issued for a tenure of seven years with a fixed profit rate of 3.81 per cent per annum, payable semi-annually in arrears.
"Proceeds raised from the Senior Sukuk Murabahah will be utilised for the working capital of its subsidiary company in Islamic business activities," it said.
The T2 Notes, rated AA2/Stable by RAM Ratings, were issued for a tenure of 12 non-callable seven (12NC7) years with a fixed coupon rate of 3.93 per cent per annum, payable semi-annually in arrears.
"The T2 Notes will have an optional redemption call option on the seventh anniversary of the issue date (with the first optional redemption date on June 30, 2032) and on any coupon payment date thereafter.
RHB Bank said proceeds raised from the T2 Notes will be utilised to finance the working capital of RHB Bank and its subsidiaries, general banking purposes and/or refinancing the outstanding borrowings or capital instruments of RHB Bank and its subsidiaries.
The RM500 million T2 Notes will qualify as Tier 2 capital of RHB Bank in accordance with Bank Negara Malaysia's Policy Document on Capital Adequacy Framework (Capital Components) issued on June 14, 2024, it added.
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