Bank Rakyat has successfully raised RM300 million through a sukuk issuance under its RM5 billion Subordinated Sukuk Murabahah Programme, further strengthening its capital position and supporting its future growth plans.
The issuance was carried out through Mumtaz Rakyat Sukuk Bhd, a special purpose vehicle established for the programme. The sukuk was completed via a book-building exercise on June 8 and has a tenure of 10 years. The instrument has received an AA3 rating from RAM Rating Services Bhd and qualifies as Tier-2 capital under Bank Negara Malaysia’s capital adequacy framework for Islamic banks.
Investor response to the offering was strong, with demand reaching up to 2.83 times the issue size during the subscription process. The issuance eventually closed with a bid-to-cover ratio of 1.78 times, reflecting healthy market interest in the sukuk.
According to Bank Rakyat, the proceeds from the issuance will be used for Shariah-compliant purposes, including working capital requirements, capital expenditure, investments, financing activities, and other general corporate needs. The funding is expected to support the bank’s ongoing operations and long-term strategic initiatives.