SME Bank Issues Inaugural RM3 Billion Government-Guaranteed Sukuk
July 20, 2012 14:05 PM
SME Bank Issues Inaugural RM3 Billion Government-Guaranteed Sukuk
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By: Ramjit
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KUALA LUMPUR, July 20 (Bernama) — SME Bank Bhd will issue a RM3 billion government-guaranteed Islamic Medium-Term Notes Programme (IMTN Programme) with tenure of up to 20 years for its syariah-compliant working capital requirements.
Its managing director, Datuk Mohd Radzif Mohd Yunus, said the first issuance of the IMTN programme would employ the wakalah structure, which was widely accepted in the Gulf Cooperation Council region.
“The sukuk programme will help us revamp our business model to support growth and empower small and medium enterprise (SME) ecosystem through our network and provide additional funds to assist more SMEs,” he told reporters at the signing ceremony of the sukuk issuance here today.
Minister of Finance II Datuk Seri Ahmad Husni Hanadzlah witnessed the signing ceremony.
In line with the other recent government-guaranteed issuances, income tax payable by investors on the periodic distributions of the bank’s sukuk would be remitted in full, Mohd Radzif said.
“The first tranche involves RM500 million for a tenure of seven to 10 years, while the second tranche will probably be issued by year-end or early next year,” he said.
In line with the other recent government-guaranteed issuances, income tax payable by investors on the periodic distributions of the bank’s sukuk would
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