SME Bank has issued a RM1 billion (US$216.64 million) five-year sustainability Sukuk facility on the 30th May 2023. With an initial offer size of RM500 million (US$108.32 million), the facility was upsized due to the demand in the bookbuilding exercise.
“The SME Bank sustainability Sukuk was priced at a competitive profit rate of 4.05% amid a challenging market environment…
“Due to [the] overwhelming demand from local and foreign financial institutions, fund management companies, Takaful and insurance firms and government-linked investment companies, the bank has opted to increase the total issuance amount to RM1 billion from the initial targeted size of RM500 million,” Dr Aria Putera Ismail, the group president and CEO of SME Bank, told ISFI.
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SME Bank’s 2023 Sustainability Sukuk RM1 billion (US$216.64 million)  30th May 2023 |
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| Summary of terms and conditions | |
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Issuer |
SME Bank |
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Obligor |
SME Bank |
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Size of issue |
RM1 billion (US$216.64 million) |
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Mode of issue |
Book building |
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Purpose |
Finance and/or refinance, in part or in whole, new and existing eligible Shariah compliant financings, including for the construction and/or development of eligible projects, provided to the issuer’s customers that meet the criteria as set out in the sustainability guidelines/framework and SME Bank’s Sustainability Sukuk Framework
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Tenor |
Five years |
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Profit rate |
4.05% |
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Payment |
Semi-annual |
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Currency |
Malaysian ringgit |
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Maturity date |
30th May 2028 |
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Lead manager(s) |
RHB Investment Bank, AmInvestment Bank, Maybank Investment Bank, CIMB Investment Bank |
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Principal advisor(s) |
RHB Investment Bank |
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Bookrunner(s) |
RHB Investment Bank, AmInvestment Bank, Maybank Investment Bank, CIMB Investment Bank |
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Governing law |
Malaysian law |
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Legal advisor(s)/council |
Adnan Sundra & Low |
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Islamic structure |
Wakalah Bi Istithmar
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Listing |
No |
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Underlying asset |
Shariah compliant securities |
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Rating |
‘AAAIS’ by MARC Ratings |
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Shariah advisor(s) |
RHB Islamic Bank |
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Tradability |
Yes |
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Face value/minimum investment |
RM5 million (US$1.08 million) |
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Investor breakdown |
Financial institutions (46%), fund managers and insurance companies (54%). |