SME Bank’s maiden sustainability sukuk Wakalah has been oversubscribed under its book building exercise, registering a final order of RM1.78 billion.
This translated into 3.56 times bid-to-cover from the target issuance of RM500 million on July 21, said SME Bank in a statement on Saturday.
SME Bank group president and chief executive officer Aria Putera Ismail said with the issuance of the sustainability sukuk, the bank would now be able to offer more innovative financing solutions for small and medium enterprises.
“Taking into account of the challenging market situation, the bank managed to price the issuance at a very competitive profit rate of 3.1 per cent. Interestingly, this sustainability sukuk has received an overwhelming demand not only from domestic institutional investors, but also from foreign asset managers.
This first non-government guarantee sukuk Wakalah programme for SME Bank has been accorded AAA ratings by Malaysian Rating Corporation Bhd and also Gold standard for the rating agency’s sustainability sukuk framework, its highest rating. – NST ONLINE/THE STAR PIX
