Kuala lumpur: The RM11.5 billion sukuk issued by Urusharta Jamaah Sdn Bhd (UJSB) is a continuation of an existing financial strategy, rather than a new bailout, according to economist Dr. Nungsari Ahmad Radhi. Sukuk, which are Islamic financial certificates similar to conventional bonds, are structured to comply with Shariah law. This latest issuance serves as a rollover for the maturing sukuk from the original Tabung Haji (TH) bailout.
According to BERNAMA News Agency, UJSB is a special-purpose vehicle under the Ministry of Finance, created to manage underperforming assets and fortify the financial position of TH. Dr. Nungsari clarified that this issuance is essentially a "rollover of the maturing sukuk," whereby UJSB reissues the sukuk instead of settling it outright. The original sukuk, which matured on May 29, 2026, had a redemption value of approximately RM12.5 billion.
The settlement involved transferring a 0.63-hectare parcel of land in Tun Razak Exchange and 8,756.92 hectares of plantation land in Sarawak, totaling RM965 million. The remaining RM11.5 billion was refinanced through a new 10-year sukuk with a coupon rate of 3.825 percent, thus extending the obligation to May 2036. Dr. Nungsari emphasized that if sufficient value is eventually recovered from the transferred assets, it could be used to redeem the outstanding sukuk.
He noted the possibility of not recovering the full value needed to meet the obligation, which would leave the Ministry of Finance bearing the risk. Dr. Nungsari explained that the original bailout was necessary because TH's assets were about RM10 billion short of its liabilities, making it unable to pay hibah. The asset transfer to UJSB, in exchange for sukuk, was part of the Ministry's strategy to stabilize TH's finances.
The exchange effectively doubled TH's assets with RM20 billion worth of sukuk, enabling it to cover its liabilities and resume paying hibah. Dr. Nungsari pointed out that while TH benefits from the sukuk coupons, UJSB and the Ministry of Finance bear the associated risks, including the shortfall in asset value. UJSB's ongoing efforts to recover asset value are crucial, with any shortfall ultimately affecting the Ministry of Finance. The RM11.5 billion issuance is thus a strategic rollover, preserving the original plan to strengthen TH's financial health.