GIB establishes MYR 3.5 billion Sukuk al-wakalah MTN programme

Gulf International Bank (GIB) is pleased to announce that it has successfully established a MYR 3.5 billion Sukuk Al-Wakalah Medium-Term Note (MTN) programme in Malaysia. 

The Islamic MTN programme is based on the Shariah principle of Wakalah. CIMB Investment Bank Berhad and Standard Chartered Saadiq Berhad are the joint lead arrangers, while GIB Capital LLC, GIB’s investment banking arm, is the international coordinator of the Sukuk programme. 

Malaysia-based RAM Ratings has assigned an indicative rating of AA₁ to GIB’s Sukuk Programme, which will be conducted through a special purpose company, Gulf Sukuk I Company B.S.C.

The rating agency stated that GIB’s Sukuk ratings “are underpinned by the strong financial support from its ultimate major shareholder the government of the Kingdom of Saudi Arabia which indirectly owns 97 per cent of the Bank…. The ratings also give credence to the Bank’s entrenched wholesale-banking franchise within the Gulf Cooperation Council region, robust capitalisation levels and healthy liquidity position.”

GIB’s Chairman, HE Jammaz bin Abdullah Al-Suhaimi, said “the Sukuk programme represents a strategic move to tap into the Ringgit market in an effort to diversify funding avenues and currencies for the Bank.”

A high-level delegation from GIB has recently undertaken a two-day road show in Kuala Lumpur to introduce the MTN programme and the Bank to Malaysian investors.

“The road show was very successful and included intensive investor presentations. We are very pleased with the interest shown by these investors and expect an issuance of Sukuk in the near future when the market conditions are convenient,” said Dr. Yahya A. Alyahya, GIB’s Chief Executive Officer.

He added, “GIB will continue to monitor the market in the future to access funding opportunities, and this Sukuk programme will allow the Bank to further diversify its funding base and improve the maturity profile of its liabilities.”

GIB is a leading bank in the Middle East with its principal focus on the GCC states. Its primary shareholder is the Public Investment Fund of Saudi Arabia. The Bank provides client-focused, innovative financial products and services to a wide customer base in the region, including asset management, IPOs, private equity placement, mergers & acquisitions, Sukuk/bond issues and Sharia-compliant banking services.