Bank Pembangunan’s RM1.25b Sukuk gets positive response


KUALA LUMPUR: Bank Pembangunan Malaysia Bhd’s (BPMB) RM1.25bil Sukuk Wakalah received positive response from diversified investors during its book-building exercise.

“BPMB surpassed its initial target issue size of RM750mil and registered a final order book of RM3.34bil translating into a total bid-to-cover (BTC) of 4.45 times (pre-upsizing) and 2.67 times (post-upsizing), ” it said in a statement on Tuesday.

The development bank said the book-building received diversified support from varied investors including financial institutions, asset managers, pension funds and insurance companies.

It also described the positive response from investors as a testament to BPMB’s strong credit profile and strategic role in nation building.

BPMB president/group chief executive officer, Arshad Mohamed Ismail said the successful second issuance under its Sukuk Wakalah programme reflected the market confidence in its strong fundamentals and strategic direction.

“We will continue to work hard in driving inclusive and sustainable growth to support the nation building agenda, ” Arshad said.

Ambank, CIMB, Maybank, and RHB acted as joint lead managers on this offering and both CIMB Islamic and Maybank Islamic acted as Shariah advisors for the transaction.

BPMB said was focused on fulfilling the development needs of the country, hence it implemented the “MIND: Measuring Impact on National Development” framework.

MIND reflected its focus on both financial and non-financial impact indicators. By using MIND, BPMB’s projects are assessed based on their financial and also social or environmental impact. Financing decisions are supported by how projects score on the scale.

Being sector agnostic and impact driven, BPMB has broadened its focus beyond traditional sectors and expanded into broad economic themes that encompass sustainability, digitalisation and inclusivity.

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