@Halal January/February 2022 | Page 7

Subordinated sukuk murabahah is worth RM300m
January-February . 2022 | @ Halal

Local News

07

BIMB issues fourth tranche

Subordinated sukuk murabahah is worth RM300m

Briefs

BANK ISLAM Malaysia Berhad (“ BIMB ”) has successfully issued its fourth tranche of RM300 million Subordinated Sukuk Murabahah (“ Sukuk ”) under its RM10 billion Sukuk Murabahah Programme on Nov 12 , 2021 .

The Sukuk Murabahah Programme of RM10 billion is the second Sukuk programme established by the bank . The programme issued its first tranche of RM300 million in November 2018 , the second tranche of RM400 million in March 2020 , followed by the third tranche of RM700 million in October 2020 .
The Sukuk shall qualify as Tier 2 regulatory capital of BIMB in compliance with Bank Negara Malaysia ’ s Capital Adequacy Framework for Islamic Banks (“ Capital Components ”). Hence , it will enhance the capital adequacy of BIMB in line with the Basel III requirements . The Sukuk , which will be redeemed at its full nominal value upon maturity ,
comes with a call option on its fifth anniversary and is rated A1 / Stable by RAM Rating Services Berhad .
BIMB lodged the Sukuk Murabahah Programme with the Securities Commission Malaysia (“ SC ”) on Sept 6 , 2018 . Under the programme , the bank has the flexibility to issue Subordinated Sukuk Murabahah and / or Senior Sukuk Murabahah during the availability period of the Sukuk Murabahah Programme .
RAM Rating Services Berhad has reaffirmed a final long-term rating of A1 / Stable and AA3 / Stable to the Subordinated Sukuk Murabahah and Senior Sukuk Murabahah , respectively , under the Sukuk Murabahah Programme .
BIMB is also the Principal Adviser , Lead Arranger , Lead Manager and Shariah Adviser for the
Sukuk Murabahah Programme .
BIMB Group Chief Executive Officer Mohd Muazzam Mohamed said the response has been positive , with orders being 2.32 times more than the issuance , with final pricing of 4.10 per cent .
“ The overwhelming demand from investors indicates the confidence the capital market has in BIMB and our long-term business sustainability ,” said Mohd Muazzam .
“ Proceeds from the issuance will ensure BIMB is adequately capitalised beyond the minimum regulatory capital requirements . The measure will further fortify our efforts to provide value to our customers as we embark on a new chapter for BIMB as a pure-play fullfledged Islamic Bank listed in Bursa Malaysia .”
Three reappointed to BNM Shariah Advisory Council
BANK NEGARA Malaysia announced the reappointment of three Shariah Advisory Council ( SAC ) members for a three-year term . The reappointment took effect on Nov 1 , 2021 .
The reappointed members were Dato ’ Dr Anhar Haji Opir ( Mufti of Selangor ), Dr Marjan Muhammad ( Head of Quality Assurance , International Shariah Research Academy for Islamic Finance ) and Zainal Abidin Jamal ( Founder and Senior Partner , Zainal Abidin & Co . ( Advocates and Solicitors )).
With this reappointment , the SAC lineup now comprises nine highly-qualified and prominent Shariah scholars and practitioners with vast experience , domestically and abroad , particularly in Shariah , laws , Islamic economics and finance .
The SAC is the highest authority for the ascertainment of Shariah in Islamic finance . It plays a central role in preserving the conformity with Shariah and sustaining public confidence in the Islamic finance industry that enables financial services according to Shariah principles .

‘ Perlindungan Tenang ’ voucher programme

THE INSURANCE and takaful industry wishes to announce the launch of Phase 2 of the Perlindungan Tenang Voucher ( PTV ) programme effective Nov 15 , 2021 , onwards .
Under the 2nd phase , the PTV programme offers social protection to about 4.8 million eligible recipients of the 2021 Bantuan Prihatin Rakyat ( BPR ) from the single and senior citizen categories via an RM50 voucher subsidy to purchase a ‘ Perlindungan Tenang ’ protection plan from participating licensed insurers and takaful operators in the country .
The single and senior citizen recipients can check their eligibility for the RM50 PTV voucher at www . myptv . my .
For the past seven weeks since the first rollout of the PTV Programme , about 93,000 vouchers worth over RM 4.6 million were redeemed by the BPR recipients under the household category .
Continuing on this positive response , during the recent tabling of the Budget 2022 , the government announced the extension of the PTV Programme for another year in 2022 with an increase in the voucher to RM75 and to enable BPR recipients to purchase comprehensive motorcycle insurance policies below 150cc .
The PTV Programme is a national initiative by the government of Malaysia in collaboration with the insurance and takaful providers .
The programme ’ s first phase was rolled out on Sept 30 , 2021 , offering social protection to around 3.6 mil-
lion eligible BPR recipients under the household category .
‘ Perlindungan Tenang ’ is an existing initiative introduced by Bank Negara Malaysia in 2017 . This initiative brings together the insurance and takaful industry to develop insurance and takaful products that meet the needs of underserved segments , particularly the lower-income population .
‘ Perlindungan Tenang ’ initiative fulfils the criteria of being easily accessible to the target audience , provides good protection value , easy to understand as well as easy to purchase and to make claims .
Elmie Aman Najas , Chairman of Malaysian Takaful Association ( MTA ), said ‘ Perlindungan Tenang ’ products provided basic protection plans against key risks in life such as death , accidents , fire , or other unfortunate events .
“ Through the PTV Programme , eligible BPR recipients can now protect themselves and their families against key risks in life with premiums and contributions from only a few ringgit per month . BPR recipients who are eligible are strongly encouraged to make redemption to enhance their social safety net .”
Antony Lee , the Chairman of Persatuan Insurans Am Malaysia , believed the government had further enhanced the rakyat ’ s financial resilience by increasing the subsidy under the PTV programme to ensure more BPR recipients availed themselves of essential insurance protection amidst these financially challenging times .
Added Loh Guat Lan , President of Life Insurance Association of Malaysia : “ The industry will continue to educate the public on the importance of financial protection and continue to reach out to our consumers through our ongoing consumer education programme as part of our efforts to improve financial literacy and financial well-being of Malaysians .”
300 discuss global insights in Islamic Fintech industry
THE 4TH ISLAMIC Fintech Dialogue 2021 ( IFD2021 ) was held virtually under the theme : Sustainability and Inclusivity through Islamic Finance .
More than 300 participants from all over the world , including France , Belgium , Nigeria , Russia , Ethiopia , Germany , Saudi Arabia and our neighbouring countries such as Singapore , Indonesia and Brunei , participated in the event that focused on the convergence of the Islamic finance industry with the financial technology ( fintech ) industry .
Established in 2017 by INCEIF ’ s ISRA Research Management Centre , the Islamic Fintech Dialogue has become a trailblazer for dialogues on this convergence . It has provided the industry and its global players with enlightening sessions by some of the world ’ s most captivating industry experts during its past conferences .
This year , despite various limitations caused by the pandemic , IFD2021 returns to promote a better understanding of Islamic fintech policies and Shariah-compliant practices and their harmonisation , including the development and impact of Islamic social financing in the Islamic finance industry and other global trends .
In his opening remarks , Prof Dato ’ Dr Azmi Omar , President and Chief Executive Officer of INCEIF , said : “ The theme this year is a timely topic for discussion . Malaysia and the rest of the world are still working to curb the wideranging impact of Covid-19 on our health , social and financial systems .
“ At INCEIF , we are committed to playing our role in promoting both sustainability and inclusivity in the Islamic finance industry and to champion the discussion of its convergence with the thriving fintech industry .”