KUALA LUMPUR: Sabah Credit Corporation (SCC)launched its RM1.5 billion Sukuk Musharakah Programme yesterday, in line with growing demand for Islamic financing in the country.
The Sukuk Musharakah Programme, launched by Sabah Chief Minister Datuk Seri Musa Aman, also provides an Islamic financing platform for the corporation to opportunistically tap the robust liquidity available in the local capital market.
This financing facility marks the second syariah-compliant sukuk programme under SCC after introducing its first Shariah compliant financing products to customers in 2010 SCC is also the first state government agency in Sabah to venture into Islamic financing.
AmInvestment Bank is the sole principal advisor and lead arranger for the Sukuk Musharakah Programme which comprises a seven-year RM750 million Islamic Commercial Papers Programme and a 20-year RM1.5 billion Islamic Medium Term Notes Programme, subject to a joint-limit of RM1.5 billion.
The programme will provide the corporation the flexibility to issue short-term and long-term sukuk from tenures of one month to up to 20 years, said SCC and AmBank in a joint-statement yesterday.
The proceeds from the sukuk will be utilised by the corporation to fund its Islamic financial business.
Meanwhile, AmBank Group chairman Tan Sri Azman Hashim said the Sukuk Musharakah Programme further strengthens Malaysia’s vibrant Islamic capital market and the country’s position as the leading Islamic financial centre globally.
“Sukuk issuances from this new programme will attract new investors, thereby enhancing SCC’s already diversified investor base from both East Malaysia and the Peninsular,” he said.
He also expressed his belief in the bank’s partnership with SCC and acknowledges the corporation’s responsible practices such as its corporate social responsibility (CSR) programmes and diligent payment of dividends to the state government.
“We are pleased that SCC has over the years successfully achieved impressive credit spread tightening on its bond issuances on the back of increased investor confidence and demand, while rewarding the existing bondholders and creating significant milestones in the capital market,” he said.
Azman said SCC has transformed itself from being a government-dependent organization to a self-sustaining agency showing steady and impressive financial performance over the years.
To date, SCC has contributed over RM17 million for 128 CSR programmes such as construction of rural school hostels, orphanages, half-way homes, centres for single mothers and rehabilitation centres within communities.
At the launch, Musa also received dividend payment of RM25 million and loan repayment of RM21,824.49 on behalf of the state government from SCC.
SCC also presented RM500,000 to SMK Tebobon to finance the construction of its multi-purpose hall, RM300,000 to Rumah Anak Yatim dan Perlindungan Tuaran and RM272,000 to the Kota Kinabalu Widows Association. — Bernama