Robust demand lifts Sukuk offering from RM500 million to RM750 million
KUALA LUMPUR, Malaysia, June 24 (Bernama) -- UOB Malaysia today announced the successful pricing of its RM750 million Basel III-compliant Tier 2 subordinated Islamic medium-term notes (Tier 2 Sukuk Wakalah) on 19 June 2025. The Sukuk is part of UOB Malaysia’s RM5 billion Sukuk Wakalah Programme, established in January 2024 under the Shariah principle of Wakalah Bi Al-Istithmar [1].
Initially targeted at RM500 million, the Tier 2 Sukuk Wakalah offering was upsized to RM750 million following strong demand from a diverse group of more than 20 high-quality investors including insurance companies, fund managers, government-linked investment companies, banks and private banks.
The Tier 2 Sukuk Wakalah was fixed at a profit rate of 3.85 per cent per annum, representing a spread of 36 basis points above the seven-year benchmark Malaysian Government Securities (MGS). The Sukuk is scheduled to be issued on 3 July 2025 and matures on 3 July 2037 with an optional redemption on 2 July 2032.
Ng Wei Wei, Chief Executive Officer UOB Malaysia
Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia, said, "We are pleased that the second tranche of our Sukuk Wakalah programme has been met with such strong investor interest, following the success of our debut issuance last year. The upsized issuance reflects continued confidence in UOB Malaysia’s credit strength and long-term strategic direction. It also reflects the depth and maturity of Malaysia’s Islamic debt capital market, which continues to attract a diverse and high-quality investor base. This outcome affirms both the resilience of Malaysia’s financial system and the enduring strength of the country’s strong economic fundamentals."
Rated AA1 by RAM Ratings, the Tier 2 Sukuk Wakalah is intended to qualify as UOB Malaysia’s Tier 2 Capital on a consolidated basis under Bank Negara Malaysia’s Capital Adequacy Framework for Islamic Banks (Capital Components).
UOB Malaysia and CIMB Investment Bank acted as the Joint Lead Managers for this transaction.
SOURCE: UOB Malaysia
