The inaugural Sukuk issuances from the Multi-Currency Sukuk Wakalah Programme are comprises of two tranches, a US-Dollar denominated Sukuk with aggregate nominal amount of USD25 million and a Yen Sukuk with aggregate nominal amount of JPY2.5 billion. The Multi-Currency Sukuk Wakalah Programme has been assigned a long-term rating of AAA(bg)/stable by RAM Ratings.
Proceeds from the inaugural issuance would be utilized for BTMU Malaysia’s Islamic banking business, general corporate purposes, refinancing and working capital requirements.“We are very excited to be the first in the world to issue a Yen-denominated “Emas” Sukuk. This signals another first for a Japanese commercial bank to issue the Sukuk out of Malaysia’s Islamic finance marketplace and in the global market,” says Mr Naoki Nishida, President and Chief Executive Officer of BTMU Malaysia.
“This landmark event reaffirms BTMU Malaysia’s strategic importance to the global BTMU network and provides impetus for BTMU to achieve its aspiration to be part of the global hub for Islamic finance within the larger Mitsubishi UFJ Financial Group global network,” added Mr Go Watanabe, Chief Executive Officer for BTMU Asia and Oceania Region.
Other than the Guarantee and the Guarantor’s Deed of Covenant that are governed by the laws of Japan, the other transaction documents of the Multi-Currency Sukuk Wakalah Programme are governed under the laws of Malaysia. This marks the first Yen-denominated Sukuk issued under the Malaysian infrastructure which provides a conducive platform for multi-currency Sukuk issuances. Leveraging on this, BTMU Malaysia has successfully priced and closed its inaugural Sukuk issuance. The issuances also provide the platform for BTMU Malaysia to diversify its funding sources for its global Islamic banking business. The two tranches of its inaugural Sukuk issuance will mature on 25 September 2015.
BTMU Malaysia, together with the CIMB Investment Bank Berhad and Mitsubishi UFJ Securities International plc., are Joint Lead Arrangers and Joint Lead Managers for the Multi-Currency Sukuk Wakalah Programme. CIMB Islamic Bank Berhad is the Shariah Adviser for the Multi-Currency Sukuk Wakalah Programme.
--www.theasianbanker.com (September 25, 2014)--