Malayan Banking Bhd (Maybank) announced that it had fully redeemed its RM2.3 billion Subordinated Murabahah Sukuk on its first call date yesterday.
In a filing with Bursa Malaysia, Maybank explained that the sukuk was issued on 9 October 2020 under the Sukuk Programme worth up to RM30 billion, which was increased from the original nominal value of RM10 billion.
The sukuk was issued to finance the banking group’s investments in Islamic financial instruments denominated in ringgit and foreign currencies.
In addition, the sukuk will also be used to finance Islamic business activities and other syariah-compliant business activities.
This redemption exercise demonstrates Maybank’s confidence in the group’s capital resilience and liquidity, in line with its ongoing efforts to optimise its capital structure.
The redemption also did not affect Maybank’s operations or ability to comply with current capital regulatory requirements, reflecting sound risk management and financial stability.
