KUALA LUMPUR, Oct 20 — RHB Bank today completed its first issuance of Senior Sukuk Murabahah worth RM300 million in nominal value under the Sukuk Murabahah Programme.

In a filing with Bursa Malaysia, the bank said the Senior Sukuk Murabahah, rated AA2 (Stable) by RAM Rating Services Bhd, were issued for a tenure of five years with a fixed profit rate of 2.85 per cent per annum, payable semi-annually in arrears.

"Proceeds raised from the Senior Sukuk Murabahah will be utilised for the working capital of the company’s subsidiary company in Islamic business activities,” it said.

On September 11, 2020, it lodged the Sukuk Murabahah Programme with the Securities Commission (SC) pursuant to the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

The Sukuk Murabahah Programme, under the Shariah principle of Murabahah (via Tawarruq arrangement) would allow the bank to issue Senior Sukuk Murabahah in multi-currency including ringgit, from time to time.

This is subject to the aggregate outstanding nominal amount of the Senior Sukuk Murabahah not exceeding RM10 billion at any point in time, subject to the option to increase the programme limit, it said. — Bernama