Public Bank issues RM500 million in sukuk

Public Bank has issued the first tranche of subordinated sukuk murabaha as part of a RM5 billion Sukuk Murabahah Programme by its subsidiary Public Islamic Bank as of 9 June.

The bank had announced in April 2014 that Public Islamic Bank had obtained approvals from Bank Negara Malaysia and the Securities Commission in Malaysia to establish the Sukuk Murabahah Programme. 

The RM500 million sukuk have a tenure of 10 years, non-callable five years, maturing on 7 June 2024, and an interest rate of 4.75% per annum.

The proceeds of the subordinated sukuk murabaha are to be made available to Public Islamic Bank, without limitation, for its working capital, general banking and other corporate purposes, all of which shall be shari'ah-compliant, Public Bank said.