KUALA LUMPUR (March 27): National mortgage corporation Cagamas Bhd has issued a multi-tenured RM500 million Sukuk Wakalah Bil Istithmar priced at yields of 3.35%, 3.50% and 3.70% for one, three and five year tenures respectively.
It said on Tuesday this was Malaysia’s first-of-its-kind Sukuk Wakalah as its structure arose from the commingling of debts (arising from a commodity murabahah transaction) with equity assets constituting an investment (istithmar) portfolio.
Cagamas said the Sukuk Wakalah meets the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards. It is deemed an investment instrument tradable at any price in the secondary market.
“The innovative Sukuk Wakalah is expected to widen and diversify the company’s investor base by enhancing secondary market liquidity for Cagamas Sukuk through the increased participation of Shariah compliant investors who would normally hold Sukuk which is deemed as debt instrument until maturity,” it said.
Cagamas said the inaugural issuance of Sukuk Wakalah widened the investment options available to Shariah compliant investors and reaffirmed Cagamas commitment to promoting the development of the Malaysian capital market and Malaysia as a premier global Islamic financial center.
The joint lead managers for the issuance were AmInvestment Bank Bhd and RHB Investment Bank Bhd.
It said on Tuesday this was Malaysia’s first-of-its-kind Sukuk Wakalah as its structure arose from the commingling of debts (arising from a commodity murabahah transaction) with equity assets constituting an investment (istithmar) portfolio.
Cagamas said the Sukuk Wakalah meets the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards. It is deemed an investment instrument tradable at any price in the secondary market.
“The innovative Sukuk Wakalah is expected to widen and diversify the company’s investor base by enhancing secondary market liquidity for Cagamas Sukuk through the increased participation of Shariah compliant investors who would normally hold Sukuk which is deemed as debt instrument until maturity,” it said.
Cagamas said the inaugural issuance of Sukuk Wakalah widened the investment options available to Shariah compliant investors and reaffirmed Cagamas commitment to promoting the development of the Malaysian capital market and Malaysia as a premier global Islamic financial center.
The joint lead managers for the issuance were AmInvestment Bank Bhd and RHB Investment Bank Bhd.
