Agrobank, a development financial institution (DFI), unveiled a US$240mn fund called the Sukuk wakalah programme with a primary focus on strengthening the agriculture sector in Malaysia
Commenting on the launch of its offering, Dato’ Mustapha Buang, chairman of Agrobank, said, “This announcement reaffirms our commitment to Malaysia’s development as a regional Islamic financial centre and demonstrates the depth of the Malaysian Sukuk capital market.”
Mustapha said that the bank will be looking to issue US$120mn for the first tranche and that Agrobank believes that the fund will further enhance Malaysia’s position in the global market. The bank aims to attract a broad range of investors from high-quality accounts including government agencies, financial institutions, asset management companies and corporate accounts.
He further added, “Proceeds from the Sukuk issuance will be utilised for the working capital requirements, general investments and/or to refinance any existing financing of Agrobank which are Shariah-compliant, hence steering the growth of the bank in the post-pandemic era. Our aim is to establish stable funding by securing the lower cost of medium and long term funding.”
After the announcement, Agrobank has also organised a virtual group investor presentation with Maybank Investment Berhad on the Sukuk wakalah programme and its target maiden Sukuk issuance to its potential and interested investors.
