RHB issues RM900mil sukuk, RM500mil Tier-2 notes
In a filing with Bursa Malaysia today, the bank stated that the Senior Sukuk Murabahah is based on the Shariah Principle of Murabahah (via Tawarruq arrangement) and rated AA1/Stable by RAM Rating Services Bhd (RAM Ratings).
The Senior Sukuk Murabahah is issued for a tenure of seven years with a fixed profit rate of 3.81 per cent per annum, payable semi-annually in arrears.
"Proceeds raised from the Senior Sukuk Murabahah will be utilised for the working capital of its subsidiary company in Islamic business activities," it said.
The T2 Notes, rated AA2/Stable by RAM Ratings, were issued for a tenure of 12 non-callable seven (12NC7) years with a fixed coupon rate of 3.93 per cent per annum, payable semi-annually in arrears.
"The T2 Notes will have an optional redemption call option on the seventh anniversary of the issue date (with the first optional redemption date on June 30, 2032) and on any coupon payment date thereafter.
RHB Bank said proceeds raised from the T2 Notes will be utilised to finance the working capital of RHB Bank and its subsidiaries, general banking purposes and/or refinancing the outstanding borrowings or capital instruments of RHB Bank and its subsidiaries.
The RM500 million T2 Notes will qualify as Tier 2 capital of RHB Bank in accordance with Bank Negara Malaysia's Policy Document on Capital Adequacy Framework (Capital Components) issued on June 14, 2024, it added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
3 hours ago
- New Straits Times
CAP wants SST imposed on cigarettes in 2026 Budget
GEORGE TOWN: The Consumers' Association of Penang (CAP) has called for the 2026 Budget to include a sales and service tax on cigarettes. CAP senior education officer and anti-smoking activist N.V. Subbarow said it was high time for this as cigarettes have been exempt from sales taxes for eight years. "The last SST was imposed in 2018 on tobacco products. After that, there was no tax on cigarettes for eight years, which is a big disappointment. "Smokers spend about RM500 every month. Even healthy food does not cost that much. "As such, we expect a mandatory sales tax on cigarettes in the 2026 Budget if the government wants to reduce the current number of five million smokers," he told the New Straits Times. Earlier today, Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, said the government was considering a proposal to raise the tobacco tax to between 60 per cent and 70 per cent of retail prices. He said the proposal was consistent with the government's health reforms. Last week, Anwar had said the government would expand its pro-health tax framework to include tobacco, vape products, and alcohol, beyond just sugary drinks, under the 13th Malaysia Plan (13MP). Subbarow said evidence from countries across all income levels showed that raising cigarette prices was very effective in reducing demand. "Higher taxes encourage some smokers to quit and deter others from starting. They also reduce the number of ex-smokers who return to cigarettes and reduce consumption among continuing smokers. "Given that this fact has been confirmed in other countries, CAP hopes our prime minister will announce a sales tax on cigarettes," he added.
The Star
2 days ago
- The Star
PHB receives RAM Ratings' AAA/Stable ratings
KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB) has received an affirmation of its AAA/Stable/P1 corporate credit ratings, as well as the AAA/Stable ratings for its RM5.0 billion Islamic Medium-Term Notes (IMTN) programme and Islamic Commercial Papers (ICP) (2024/2031) by RAM Ratings. The real estate investment holding arm of Yayasan Pelaburan Bumiputra (YPB) said the rating affirmation reflects PHB's sound financial profile, measured cost management, and its role in supporting national objectives to enhance Bumiputera participation in commercial real estate through Amanah Hartanah Bumiputera (AHB), a Shariah-compliant unit trust fund. PHB Group managing director and chief executive officer Mohamad Damshal Awang Damit said the affirmation of the company's credit rating reflects market confidence in PHB's resilient fundamentals and prudent approach to capital and portfolio management. "We remain focused on generating long-term value while upholding our mandate to drive inclusive economic participation through real estate investment," he said in a statement today. As part of its strategic pivot, PHB is rebalancing its portfolio exposure away from office assets and towards more resilient and demographically supported sectors such as industrial, healthcare and education. "PHB's role in national development remains central to our operations, as we continue to enhance Bumiputera access to institutional-grade real estate through AHB, contributing to inclusive and sustainable economic growth," said Mohamad Damshal. AHB is currently valued at RM5 billion, benefiting more than 82,000 Bumiputera investors in Malaysia with a stable stream of yearly dividends ranging from 4.7 per cent to 7.5 per cent between 2011 and 2025. In the financial year ended December 2024 (FY2024), PHB reported a 17 per cent increase in revenue to RM464 million, compared to FY2023's RM396 million, supported by stronger rental income and improved occupancy across its portfolio. Operating efficiency also improved, with property-related costs contained at just 1.2 per cent year-on-year at RM177 million versus FY2023's RM175 million, due to the insourcing of facility and lease management services. Consequently, the net property income (NPI) margin strengthened to 61 per cent compared to the previous year's 56 per cent. As of end-2024, PHB maintained a healthy financial profile with a gearing ratio of 0.29 times, compared to end-2023's 0.23 times, and a cash-to-short-term debt ratio of 4.1 times versus 1.2 times at end-2023. -- BERNAMA TAGS: PHB, AHB, RAM Ratings, Mohamad Damshal Awang Damit
New Straits Times
3 days ago
- New Straits Times
RHB to gain RM145mil boost from bancassurance tie-ups, says CIMB Securities
KUALA LUMPUR: RHB Bank Bhd's renewed bancassurance agreements are expected to boost its return on equity (ROE), with estimated improvements of 0.3 percentage points in 2026 and 0.25 percentage points in 2027. CIMB Securities said that, based on its simulation of the RM1.61 billion access fee being amortised over 20 years at an effective interest rate of 5 per cent, the deal could contribute about RM145 million in non-interest income (NOII) or RM109 million after tax in 2026 and RM140 million (RM106 million after tax) in 2027. "These fees will provide stable and recurring revenue fee-based income to the RHB group over the next 20 years," it said in a note. The research house noted that with deeper collaboration, RHB, Tokio Marine Life Insurance Malaysia Bhd, and Syarikat Takaful Malaysia Keluarga Bhd are expected to continue benefiting from synergies through greater operational efficiency and an improved customer experience. "Meanwhile, renewing the agreements also avoids transitional disruptions due to the high degree of operational integration (system connectivity, customer insights, sales force training) that has been in place as a result of the long-standing relationships between RHB and Tokio Marine as well as Syarikat Takaful. "On a more positive note, all parties can now deepen technological collaboration, such as seamless product integration into RHB's digital banking apps, which would otherwise require a longer time to replicate with new partners," it said. CIMB Securities has reiterated its 'Buy' recommendation on RHB Bank but has reduced its target price to RM7.35 from RM7.50. The new valuation is based on a price-to-book value multiple of 0.91 times applied to the 2026 book value per share of RM8.06, compared to the previous assumption of 0.9 times on the 2025 BVPS. This revision reflects a lower projected return on equity (ROE) of 9.4 per cent for 2026 and a cost of equity of 10 per cent. The research house also cut its earnings forecasts for RHB by 6.9 per cent for 2025, 7.6 per cent for 2026, and 5.2 per cent for 2027.
