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April 22, 2021

This is BIMB's Smart Step For Its Subsidiaries

 Bank Islam Malaysia Bhd (BIMB) is expected to be listed on the main board of Bursa Malaysia this August, as part of the completion of the restructuring measures of its parent company, BIMB Holdings Bhd (BHB).

According to the Chief Executive Officer of BIMB, Mohd. Muazzam Mohammed, BHB had applied for restructuring approval in December 2019 but following the Covid-19 pandemic crisis, the approval was only received from Bank Negara Malaysia (BNM) and the Ministry of Finance in December last year.

“Once listed, BIMB will continue its efforts to be a leader in comprehensive financial solutions in the shariah, social and governance environment with leadership in digital banking as well as social finance.

"We also aim to increase the size of our assets to more than RM100 million within 5 years from RM75 million currently through organic growth and expansion into the digital banking space," he said as reported by Bernama.

Add Mohd. Muazzam, upon completion of the restructuring process, BIMB and Syarikat Takaful Malaysia Keluarga Bhd (STMKB) will maintain their separate listing status while BHB will be an inactive subsidiary of BIMB.

To make BHB an inactive company, he said the company had made an initial sale of shares in April after issuing 222 million new shares at an issue price of RM3.58 per share.

According to him, the company managed to collect around RM795.5 million in gross revenue through measures that will be used to redeem BHB sukuk amounting to between RM920 million and RM960 million in May or June when implemented.

The balance of the redemption measures of sukuk and other liabilities in BHB will be settled through internal funds.

Said Mohd. Muazzam, the company was also asked to redeem BHB's warrant shares amounting to more than 427 million worth RM162 million which will be paid in the second quarter of this year depending on the Kuala Lumpur High Court's restrictions.

BIMB also acquired BHB's existing subsidiaries, namely BIMB Securities Holdings Bhd, BIMB Securities Sdn Bhd and Syarikat Al-Ijarah Sdn Bhd.