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Agrobank Sukuk Wakalah Programme Wins Best Sukuk Award 2022

KUALA LUMPUR – Agrobank’s financial excellence was acknowledged when it was announced as the winner of “Best Bank Sukuk for Malaysia Category”, in The Asset Triple A, Islamic Finance Awards 2022.

The award is a testament to the success of Agrobank’s successfully priced its inaugural RM500 million Sukuk Wakalah Programme based on the Islamic principle of Wakalah Bi Al-Istithmar on 18 October 2021.

The success of the issuance has also galvanised Agrobank’s brand identity as a business-driven entity by creating platforms to proactively optimising its capital structure in line with its mission, vision and business strategy.

Commented on the award, Tengku Ahmad Badli Shah Raja Hussin, President/Chief Executive Officer of Agrobank said, “We are very proud to receive this award as it is reflective of the innovative approaches that the Bank takes in conducting our business, be it financially or operationally.  Our finance team, especially deserves to be commended for ensuring that this Sukuk programme and its issuance was a success.”

“This award represented a premier financial recognition for Agrobank as the award was reserved for distinctive organisations who are pivotal to the development of Malaysia as a leading Asian Sukuk market. It also marked Agrobank’s commitment in enhancing Malaysia’s position as a global Islamic financial hub and solidify its position as a leader in the global Islamic capital markets,” he further added.

The award was received by Chief Finance Officer of Agrobank, Kamarul Azman Kamarozaman@Amir from Managing Editor of The Asset, Chito Santiago, at an event held at the Four Seasons Hotel Kuala Lumpur on Thursday. 

Agrobank put forth a dual-tranche debut offering to the market on a five and seven-year Sukuk which landed at a very tight spread of 51 bps and 49 bps respectively. The book was closed at very competitive levels of 3.63% p.a for the five-year Sukuk and 3.90% p.a for the seven-year Sukuk, amidst a challenging market environment. This was achieved after price tightening of between four to six basis points across the tenures from the initial price guidance.

The inaugural issuance saw strong orders from quality investors comprising government agencies, financial institutions, asset management companies and insurance companies which resulted in an oversubscription of the amount offered.

The Sukuk Wakalah Programme has been assigned a rating of AAA by Malaysian Rating Corporation Berhad. Maybank Investment Bank has acted as the Sole Principal Adviser, Sole Lead Arranger and Sole Lead Manager for the Sukuk Wakalah Programme for Agrobank.

The Asset Triple A, Islamic Finance Awards 2022 recognises the most influential and prominent financial institutions and organisations that are seen as leaders, innovators and visionaries in the domestic bond market and also in their respective industries.