SCC’s upsized RM3.5 bln Sukuk Musharakah launched

KOTA KINABALU: Sabah Credit Corporation (SCC) yesterday launched its upsized RM3.5 billion Sukuk Musharakah programme and its new Shariah-based financing product, i-Cash.

The launching ceremony, which was officiated by Chief Minister cum State Finance Minister Datuk Seri Panglima Musa Haji Aman, saw the Sukuk Musharakah programme be upsized from RM1.5 billion two years ago to RM3.5 billion presently.

Ambank Group chairman Tan Sri Azman Hashim said SCC’s newly upsized Sukuk programme provided a large and efficient platform for consolidating the latter’s capital and funding vehicles while achieving its organizational objectives to encourage capital formation in Sabah.

“The Suku Musharakah programme further strengthens Malaysia as a growing Islamic capital market and our country’s position as the leading Islamic financial centre globally, accounting for a sizeable RM61.3 billion which represents 46 per cent of the total global Sukuk issuances.”

He said Sukuk issuances from the upsized programme would attract new investors, thereby enhancing SCC’s already diversified investor base from both East and West Malaysia.

AmInvestment Bank is acting as the principal advisor and lead manager for the Sukuk Musharakah programme.

Meanwhile, Musa said the upsizing of the Sukuk Musharakah programme had saved SCC at least RM300,000 in fees and other costs.

“The State Government through the Financial Ministry fully supports the upsized RM3.5 billion Sukuk Musharakah programme and hopes that potential and existing investors will continue to subscribe to it.”

Musa said SCC had shown steady financial performance over the years. In the recent closing of December 31, 2016 account, SCC attained pre-audited profit of over RM60 million.

“Chief executive officer Datuk Vincent Pung informed me that there will be lesser profit for the year 2016 due to the rationalization in recognizing SCC profit to be based on Malaysian Private Entities Reporting Standard (MPERS).

“However, despite going through this rationalization, SCC is still able to contribute to the State coffers with an interim dividend of RM8 million.”

Since 2002, Musa said SCC had declared over RM232 million in dividends to the State Government.

He also noted SCC’s prudent financial strategies and good management that earned the latter a rating of AA1/P1 by the Rating Agency Malaysia (RAM) for its stable outlook, as well as five stars on Accountability Index by the Auditor General Office.

He added that SCC’s entrepreneurship spirit was shown through its consistent and steady improvement in financial performance over the last 22 years.

Musa pointed out that the launch of i-Cash, a new Shariah-based financing product, allowed a more flexible consumer financing facility to empower borrowers in better controlling their finances.

With i-Cash, clients need not be compelled to take one-off substantial financing just to avoid the tedious process of loan application.  Clients are also empowered to process their own loans virtually.

“Continuous innovative strategies in synergizing people, process and technology has allowed SCC to improve its operational efficiency and effectiveness, and has maximized its limited human resources effectively.”

He said SCC had continued to play a role in complementing the government in the socio-economic development of the State through its corporate social responsibility (CSR) programmes.

Over RM23 million has been spent for more than 150 CSR projects such as rural hostels, orphanages, half-way homes and centres for single mothers.

“I encourage SCC and other government linked companies to continue assisting those in need.”

At the same time, Musa said Sabah was an investor friendly destination and the State Government would strive to ensure smooth facilitation for investment programmes as they continued to build the State’s economy.

The event also witnessed the interim dividend payment of RM8 million to the State Government.

SCC also handed over its CSR contributions to SM Shan Tao (RM376,000) to finance two classrooms, SMK St Francis Xavier Secondary School, Keningau (RM492,000) for a partially covered multi-purpose hall as well as to SK Sebayan, Kudat (RM330,000), SMK Tambunan (RM349,800), SK Kebulu, Keningau (RM330,000) and SK Pulau Sumandi, Semporna (RM362,000) to erect rural hostels.

Present at the event were State Secretary Tan Sri Sukarti Wakiman, SCC chairman Datuk Linda Tsen Thau Lin and Permanent Secretary to the Ministry of Finance, Datuk Pengiran Hassanel bin Datuk Pg Hj Mohd Tahir.

What do you think of this story?
  • Great (0%)
  • Interesting (0%)
  • Nothing (0%)
  • Sad (0%)
  • Angry (100%)
Print Friendly

 

We encourage commenting on our stories to give readers a chance to express their opinions; please refrain from vulgar language, insidious, seditious or slanderous remarks. While the comments here reflect the views of the readers, they are not necessarily that of Borneo Post Online. Borneo Post Online reserves the right not to publish or to remove comments that are offensive or volatile. Please read the Commenting Rules.

Affiliates

 

Supplement Downloads

Member of