KUALA LUMPUR: Bank Simpanan Nasional (BSN) has received an overwhelming response from investors after successfully priced a RM750 million sukuk wakalah.
The bank said the sukuk was successfully priced on October 7, 2021, under a one-day book-building exercise. The proceeds will be used for the banking group's shariah-compliant financing activities.
"It has received a robust response from various investors during its book-building exercise, leading to the transaction being upsized to RM750 million from the initial size of RM500 million.
"The sukuk was oversubscribed by 3.48 times with the final order book registering RM2.61 billion total orders from over 30 accounts consisting of fund managers, financial institutions, lifers and government agencies, it said.
Chief executive officer Jay Khairil said the successful launch of this sukuk marks another critical milestone for BSN as this is the bank's maiden issuance in the capital markets.
"We are pleased with the investors' response to our debut offering and the outcome of the transaction.
"The overwhelming demand we received from the investors is an indication of the confidence the market has in BSN and the sustainability of our business, with a special mandate as the national savings bank and a strategic government vehicle to implement the government's agenda," he said in a statement today.
Due to a successfully executed book-building strategy and robust demand received during the book-building exercise, the 3-year, 5-year and 7-year sukuk wakalah tranches were finally priced at 2.93 per cent, 3.47 per cent and 3.89 per cent, respectively, at two to three basis point tighter than the lower end of the initial price guidance.
The sukuk wakalah programme has been assigned a final rating of AAA by RAM Rating Services Bhd.
Maybank Investment Bank Bhd is the principal adviser and lead arranger for the Sukuk Wakalah Programme, whereas the joint lead managers are Affin Hwang Investment Bank Bhd, Bank Islam Malaysia Bhd and Maybank Investment Bank Bhd.