Malayan Banking Bhd (Maybank) is issuing US dollar subordinated sukuk amounting to US$300 million (RM1.03 billion) and it has incorporated a special purpose vehicle (SPV) in Labuan to issue it.
Maybank said on April 11 that the SPV -- MBB Sukuk Inc -- would issue the 10 non-callable five-year Islamic sukuk, the first international Islamic subordinated issue in the world.
"The US dollar sukuk will be classified as Tier-2 capital for the purpose of risk weighted capital ratio computation," it said. The sukuk would be rated by Moody’s Investors Service, Standard and Poor’s and Fitch Ratings.
Maybank had mandated Aseambankers Malaysia Bhd, the Hong Kong and Shanghai Banking Corporation Ltd, Labuan unit and UBS AG Labuan branch as joint bookrunners and joint lead managers for the sukuk issuance.
It received the Labuan Offshore Financial Services Authority's approval on April 10.