AmIslamic Bank, the Malaysia-based Islamic bank, bolsters its sukuk offering following an approval from the Securities Commission of Malaysia.

AmIslamic Bank, the Malaysia-based Islamic bank that is wholly-owned by AMMB Holdings, has received approval from the Securities Commission of Malaysia to set up a subordinated sukuk murabaha programme of up to MYR3 billion ($903.6 million).

The sukuk al murabaha, or deferred payment Islamic bonds, will have a tenor of up to 30 years from the first issuance. Each tranche to be issued will have a tenor of at least three years, subject to their maturing on or before its expiry. It is also Basel III-compliant and has received an AA3, or "stable," rating from RAM Ratings. 

"This is the first RAM-rated Basel III-compliant sukuk in Malaysia. With Basel III regulation on capital components coming into effect early last year, we expect more issuances of Basel III-compliant sukuk in the Malaysian debt capital market," said Won Ying Ching, said co-head of financial institutions ratings at RAM.

AmInvestment Bank and Amanie Advisors are the principal advisors, lead arrangers, lead managers and Shariah advisors of the programme.