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KUALA LUMPUR: Malaysia Building Society Bhd (MBSB) said yesterday that its subsidiary Jana Kapital Sdn Bhd’s proposed RM4 billion 16-year sukuk murabahah programme has been set up merely for the purpose of facilitating MBSB’s proposed RM3 billion 15-year structured covered sukuk murabahah programme.
“... The proposed 16-year sukuk commodity murabahah programme of up to [RM4 billion] to be undertaken by Jana Kapital Sdn Bhd is merely to facilitate the issuance of the structured covered sukuk under MBSB’s proposed 15-year structured covered sukuk commodity murabahah programme of up to [RM3 billion],” it said in a filing with Bursa Malaysia yesterday.
It said MBSB’s fundraising will be derived solely from the structured covered sukuk programme. MBSB’s structured covered sukuk is to be issued in tranches, with each tranche backed by identified eligible financing receivables held by Jana Kapital.
The proceeds from the issuance of MBSB’s structured covered sukuk will be utilised for the subscription of sukuk murabahah issued by Jana Kapital, in accordance with the transaction structure of the structured covered sukuk programme.
“Jana Kapital will utilise the proceeds arising from the issuance of the Jana Kapital sukuk murabahah to purchase eligible financing receivables from MBSB. MBSB will in turn use the sale proceeds ... for its working capital purposes, including funding of its origination of financing assets in line with its business activities,” the company said.
This article first appeared in The Edge Financial Daily, on October 30, 2013.
