Cagamas to issue new sukuk worth RM5b

Cagamas to issue new sukuk worth RM5b
By ELAINE ANG
elaine@thestar.com.my

KUALA LUMPUR: Cagamas Bhd aims to issue the first tranche of its newly launched Sukuk al-Amanah Li al-Istithmar (Sukuk ALIm) – said to meet the most stringent syariah requirements including those of Middle Eastern investors – worth some RM1bil in a month’s time.

President and chief executive officer Steven Choy said the plan was “to do it within a month but it depends on circumstances and everything falling into place.”

He said the sukuk would initially target investors in the local market, for example, the more discerning investors such as the Middle Eastern banks that had set up operations here as well as Cagamas’ existing sukuk investors before turning towards the Middle Eastern markets.

“We have had some early indications and response has been very good,” he said after the launch of Sukuk ALIm under Cagamas’ RM5bil Islamic commercial paper (ICP) and Islamic medium-term note (IMTN) programmes yesterday.

The ICP and IMNT programmes have a tenure of seven and 30 years respectively and a combined aggregate limit of RM5bil.

Al Rajhi Bank Malaysia chief executive officer Ahmed Rehman said the bank had been working closely with Cagamas on the sukuk for more than a year.

He added that Sukuk ALIm was tradable in the secondary market and was expected to meet the requirements of a wider range of investors since it precluded certain principles which might be contentious to syariah.

“The significance of this sukuk is that it adheres to the strictest of compliance standards from the Middle East. As a result, it opens up the opportunity to unlock the liquidity that is in the Gulf market.

“Based on such a structure we can approach audiences in the Gulf for flow of funds into Malaysia. However, this is just the start and it has to be developed,” he said.

Sukuk ALIm could set the benchmark for future sukuk issuances particularly those targeting the Middle Eastern markets.

For the sukuk to be tradable, tangible assets must make up at least 50% of the total assets the sukuk represents with the balance made up of financial assets. The tangible assets to be considered will be property based.


The sukuk programmes have been rated AAA or equivalent by Malaysian Rating Corp Bhd (MARC) and RAM Rating Services Bhd.

MARC has also maintained a stable outlook on the ratings.

“The stable outlook on the ratings incorporates Cagamas’ strong financial profile, enhanced risk management as well as the strong support framework in place,” it said in a statement.

RAM Ratings said in a statement that the ratings reflected Cagamas’ systemic importance in the domestic capital markets, robust receivables profile and solid capitalisation.

Al Rajhi Bank together with RHB Investment Bank Bhd have been appointed joint principal advisers and joint lead arrangers for the sukuk programmes.

Al Rajhi Bank and Amanie Business Solutions Sdn Bhd are the syariah advisers.

The joint lead managers are Al Rajhi Bank, RHB Investment Bank and The Royal Bank of Scotland.

In terms of issuance of sukuk, Cagamas Islamic securities represent 24.1% of the total AAA sukuk outstanding of RM13.5bil as at end June 2010.

source: http://biz.thestar.com.my/news/story.asp?file=/2010/7/14/business/6657389&sec=business

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Cagamas lancar sukuk ALIm

Oleh Zainab Mohd Yatim
zmy@bharian.com.my
2010/07/14
Had agregat terkumpul RM5 bilion

CAGAMAS Bhd menambah kepada pilihan pelaburan instrumen berlandaskan Syariah di negara ini, terutama untuk institusi kewangan Islam serta pelabur Asia Barat, dengan melancarkan Sukuk al-Amanah Li al-Istithmar (ALIm) dengan had agregat terkumpul RM5 bilion.

Presiden dan Ketua Eksekutif Cagamas, Steven Choy, berkata program kertas komersial (CP) dan nota jangka sederhana Syariah (IMTN) dengan tempoh matang tujuh dan 30 tahun itu juga bakal menjadi penanda aras utama industri sukuk di Malaysia.

Beliau berkata, terbitan pertama Sukuk ALIm yang dibangunkan Al Rajhi Bank Malaysia itu akan dibuat dalam tempoh sebulan dengan nilai RM1 bilion.

“Sukuk ALIm diberi penarafan ‘AAA’ atau bersamaan dengannya oleh Malaysian Rating Corporation Bhd dan RAM Rating Services Bhd itu bukan saja diterima lebih meluas dan didagangkan dalam pasaran sekunder, tetapi turut menepati kehendak pelabur yang tegas dengan pematuhan Syariah.

“Ini mencerminkan komitmen Cagamas untuk menyumbang kepada pembangunan pasaran modal Malaysia dan menjadikan Malaysia sebagai pusat kewangan Islam sejagat yang unggul.

“Kami yakin Sukuk ALIm yang berinovatif dan dibangunkan bersama dengan Al Rajhi Malaysia, akan menjadi penanda aras bagi industri sukuk di Malaysia.
“Kami percaya program yang memenuhi standard Syariah Al Rajhi sangat ketat dan rangka kerja sukuk itu juga akan diterima pelabur yang tegas dengan pematuhan berkenaan,” katanya pada sidang media selepas pelancaran program baru itu, di Kuala Lumpur, semalam.

Pelancaran program itu diikuti majlis memeterai perjanjian terbitan sukuk ALIm antara penasihat utama dan penyusun utama bersama serta pengurus utama bagi program berkenaan.

Al Rajhi bersama RHB Investment Bank (RHB) adalah Penasihat Utama dan Penyusun Utama Bersama untuk Sukuk itu, manakala penasihat syariah bagi produk berkenaan adalah antara Al Rajhi Bank dan Amanie Business Solutions Sdn Bhd.

Al-Rajhi juga akan menjadi pengurus utama program berkenaan, bersama RHB Investment dan The Royal Bank of Scotland (RBS).

Pada perjanjian itu Cagamas diwakili oleh Choy, Al Rajhi oleh Ketua Eksekutifnya, Ahmed Rehman, RHB Investment oleh Pengarah Urusannya, Chay Wai Leong dan RBS oleh Pengarah Urusannya, Andrew Sill.

Perjanjian itu disaksikan Timbalan Menteri Kewangan, Datuk Dr Awang Adek Hussin.

Choy berkata, sebagai penerbit utama bagi sekuriti hutang dengan penarafan AAA, selain menjadi salah satu penerbit Sukuk utama dunia, tawaran Sukuk ALIm melengkapkan terbitan program CP dan IMTN Cagamas yang kini berjumlah RM60 bilion.

Sejak memulakan operasi pada 1986, secara terkumpul Cagamas telah menerbitkan sekuriti hutang konvensional dan Islam berjumlah RM243.56 bilion.

Hingga akhir Jun lalu, jumlah terbitan dalam pasaran berjumlah RM28.2 bilion yang mana daripada jumlah itu 30.9 peratus terdiri daripada sekuriti hutang dengan penarafan AAA, manakala bagi terbitan sukuk pula berjumlah RM13.5 bilion dan 24.1 peratus adalah terbitan AAA.

sumber: http://www.bharian.com.my/bharian/articles/CagamaslancarsukukALIm/Article/index_html