State government agency the Sabah Credit Corporation (SCC) has launched the Sukuk
Musharakah Programmes valued at RM1.5 billion with AmInvestment Bank as the Principal
Advisor, Lead Arranger and Lead Manager.
SCC introduced
its first Shari'ah compliant financing products to its customers in 2010
and is the first State Government Agency in Sabah to venture into
Islamic financing. As at December 2013, Islamic financing constitutes
RM1,785.3 billion or 84.5% of the Corporation’s financing portfolio.
In
line with the growing demand for Islamic financing in Malaysia, the
Sukuk Musharakah Programmes provide an Islamic financing platform for
the Corporation to tap the robust liquidity available
in the local capital markets. This financing facility marks the second Shari'ah-compliant Sukuk programme under SCC.
AmInvestment Bank
is acting as the sole Principal Advisor and Lead Arranger for the Sukuk
Musharakah Programmes which comprise 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
Sukuk Musharakah Programmes will provide the Corporation the
flexibility to issue short-term and long-term Sukuk from tenure of one
month up to twenty years. The proceeds from the Sukuk will be
utilised by the corporation to fund its Islamic financial business. RAM
Rating Services Berhad has assigned a short-term rating of P1 and
long-term rating of AA1 to these Sukuk Musharakah Programmes.
The launch event was witnessed by Yang Amat Berhormat Datuk
Seri Panglima Musa Hj. Aman, Chief Minister of Sabah and Sabah Minister
of Finance, Tan Sri Azman Hashim, Chairman, AmBank Group and YB Datuk
Linda Tsen, Chairman, Sabah Credit Corporation.
The
ceremony also witnessed the dividend payment of RM25 million and loan
repayment of RM21,824 by SCC to the State Government through the
State Ministry of Finance. There were also CSR presentations to SMK Tebobon, Menggatal to finance its multi-purpose open hall, Rumah Anak Yatim dan Perlindungan, Tuaran and to the Kota Kinabalu Widows Association.