Kuala lumpur: Bank Islam Malaysia Bhd has issued RM1.0 billion Senior Sukuk Murabahah under its RM10.0 billion Sukuk Murabahah Programme on July 25. The issuance marks the ninth tranche under the bank’s RM10 billion Sukuk Murabahah Programme.

According to BERNAMA News Agency, Bank Islam stated that the sukuk received an overwhelming response from investors, achieving a high bid-to-cover ratio of three times. The Senior Sukuk Murabahah is rated AA3/stable by RAM Ratings Services Bhd and carries a profit rate of 3.85 per cent per annum for a seven-year tenure.

The bank noted that the proceeds would be used to finance Bank Islam’s banking activities, working capital requirements, and other corporate purposes. The utilisation of the funds will adhere to Shariah principles.

Bank Islam is serving as the principal adviser, lead arranger, lead manager, and Shariah adviser for the Sukuk Murabahah Programme.