PETALING JAYA: Alliance Financial Group Bhd’s (AFG) indirect wholly-owned subsidiary Alliance Islamic Bank Bhd has proposed a subordinated sukuk murabahah programme of up to RM180 million for the issuance of subordinated sukuk murabahah.
In a filing with Bursa Malaysia yesterday, AFG said Alliance Investment Bank Bhd (AIBB), on behalf of Alliance Islamic, has on Wednesday (Sept 13) lodged with Securities Commission Malaysia all the required information and relevant documents relating to the sukuk programme.
Under the sukuk programme, Alliance Islamic may issue and have outstanding, at any time, subordinated sukuk of up to RM180 million in nominal value. The proceeds raised from the issuance of the subordinated sukuk will be used for syariah compliant purposes.
Alliance Islamic intends to use the proceeds for its general banking, working capital and other corporate purposes, including the refinancing of any financing incurred and/or any financing instruments issued by Alliance Islamic.
The subordinated sukuk are also intended to qualify as Basel III compliant Tier 2 regulatory capital of Alliance Islamic in accordance with the Capital Adequacy Framework for Islamic Banks (Capital Components) issued by Bank Negara Malaysia (BNM) on Aug 4, 2017.
The approval from BNM for the establishment of the sukuk programme and the issuance of up to RM130 million of subordinated sukuk had been obtained on Aug 24, 2017.
AIBB is the principal adviser, lead arranger, lead manager and facility agent for the sukuk programme, and Alliance Islamic is the syariah adviser for the sukuk programme.