SME Bank to issue RM3bil govt-guaranteed sukuk

KUALA LUMPUR: SME Bank Bhd
will issue a RM3 billion government-guaranteed Islamic Medium-Term
Notes Programme (IMTN Programme) with tenure of up to 20 years for its
syariah-compliant working capital requirements.
Its managing director, Datuk Mohd Radzif Mohd Yunus,
said the first issuance of the IMTN programme would employ the wakalah
structure, which was widely accepted in the Gulf Cooperation Council
region.
"The sukuk programme will help us revamp our business
model to support growth and empower small and medium enterprise (SME)
ecosystem through our network and provide additional funds to assist
more SMEs," he told reporters at the signing ceremony of the sukuk
issuance here today.
Minister of Finance II Datuk Seri Ahmad Husni Hanadzlah witnessed the signing ceremony.
"The
first tranche involves RM500 million for a tenure of seven to 10 years,
while the second tranche will probably be issued by year-end or early
next year," he said.
In line with the other recent
government-guaranteed issuances, income tax payable by investors on the
periodic distributions of the bank's sukuk would be remitted in full,
Mohd Radzif said.
"The first tranche involving RM500 million for
a tenure of seven to 10 years, while the second tranches will probably
issue by year-end or early next year," he said.
The sukuk would
probably yield 3.5 per cent, however, it still depend on a
book-building exercise, said its corporate planning & strategy,
vice president/head, Mohamad Sabir Mohamad Sabri.
The bank has appointed AmInvestment Bank Bhd, Kuwait Finance House (M) Bhd and Maybank Investment Bank Bhd as the joint lead arrangers and joint lead managers for the sukuk.
Earlier, SME Bank inked an agreement to set up a RM263 million 1-SME Rationalised Fund with the Ministry of Finance to facilitate and optimise the financing activity and accessibility by target groups.
Under
the programme, 18 funds under the supervision of the Ministry of
International Trade and Industry were rationalised into five groups
managed by SME Bank.
Meanwhile, Husni also launched the SME
Revitalisation Scheme (SRS), also known as the "2nd Chance Programme",
to help viable but distressed SMEs secure additional financing for the
ongoing business.
The scheme is to facilitate the restructuring
and rescheduling of "participating financial institutions" financing
and to extend additional financing facilities to viable SMEs with
delinquent or impaired financing, subject to maximum aggregate
financing amount of not more than RM5 million, inclusive new financing
under the SRS.
"The initiatives that we are launching today will act as catalysts for the SME industry," Husni said. -BERNAMA