Wednesday March 28, 2012
Cagamas issues RM500m Wakalah sukuk
PETALING JAYA: Cagamas Bhd has issued a multi-tenured RM500mil Malaysia's first-of-its-kind Wakalah Bil Istithmar sukuk.
The structure of the product involved the co-mingling, or mixing together, of debts (arising from a commodity murabahah transaction) with equity assets constituting an investment (istithmar) portfolio which meets the Accounting and Auditing Organisation for Islamic Financial Institutions standards, Cagamas said in a statement.
The Wakalah sukuk is an investment instrument tradable at any price in the secondary market.
The product is expected to widen and diversify the company's investor base by enhancing secondary market liquidity for Cagamas sukuk through the increased participation of syariah-compliant investors who would normally hold sukuk as debt instrument until maturity.
Issued out of Cagamas' RM60bil commercial paper and medium-term note programmes, the Wakalah sukuk is priced at the yields of 3.35%, 3.5% and 3.7% for one-, three- and five-year tenures respectively.