Saturday, July 21, 2012

SME Bank issues inaugural RM3bil govt-guaranteed sukuk

KUALA LUMPUR: SME Bank Bhd will issue a RM3bil government-guaranteed Islamic medium-term notes (IMTN) programme with tenure of up to 20 years for its syariah-compliant working capital requirements.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/7/21/business/11702934&sec=business
Published: July 21, 2012

Managing director Datuk Mohd Radzif Mohd Yunus said the first issuance of the IMTN programme would employ the wakalah structure, which was widely accepted in the Gulf Cooperation Council region.

“The sukuk programme will help us revamp our business model to support growth and empower small and medium enterprise (SME) ecosystem through our network and provide additional funds to assist more SMEs,” he said at the sukuk issuance ceremony yesterday.

Minister of Finance II Datuk Seri Ahmad Husni Hanadzlah witnessed the signing ceremony.
“The first tranche involves RM500mil for a tenure of seven to 10 years, while the second tranche will probably be issued by year-end or early next year,” he said.

In line with the other recent government-guaranteed issuances, income tax payable by investors on the periodic distributions of the bank's sukuk would be remitted in full, Mohd Radzif said. “The first tranche involving RM500mil for a tenure of seven to 10 years, while the second tranches will probably be issued by year-end or early next year,” he said.

The sukuk would probably yield 3.5%. However, it still depended on a book-building exercise, said its corporate planning & strategy, vice president/head, Mohamad Sabir Mohamad Sabri.

The bank has appointed AmInvestment Bank Bhd, Kuwait Finance House (M) Bhd and Maybank Investment Bank Bhd as the joint lead arrangers and joint lead managers for the sukuk.

Earlier, SME Bank inked an agreement to set up a RM263mil 1-SME Rationalised Fund with the Ministry of Finance to facilitate and optimise the financing activity and accessibility by target groups.

Meanwhile, Husni also launched the SME Revitalisation Scheme (SRS), also known as the “2nd Chance Programme,” to help viable but distressed SMEs secure additional financing. Bernama

No comments:

Post a Comment