Sekatarakyat Launches RM2 Bln Wakalah Sukuk

PUTRAJAYA, Nov 20 (Bernama) -- Koperasi Kakitangan Bank Rakyat Bhd (Sekatarakyat) has entered into a collaboration with Bank Islam Malaysia Bhd through the issuance of RM2 billion worth of Wakalah Sukuk, marking the cooperative's inaugural entry into the Shariah-compliant capital market.

The sukuk programme, with a tenor of up to 30 years, represents an important step for Sekatarakyat in achieving its long-term financial growth and sustainability objectives.

Sekatarakyat chairman Datuk Mohamed Arsad Sehan said the proposed sukuk issuance aims to maximise returns for members, expand the cooperative's Shariah-compliant business, strengthen working capital and meet general corporate needs.

He said most of the funds raised are expected to be used for the development of the ar-Rahnu business.

"We have 17 ar-Rahnu shops and an immediate plan for three more ar-Rahnu shops to open next year, subject to how quickly we obtain approval from the Malaysian Cooperative Commission," he told reporters at the signing ceremony for the Sukuk Rakyat Programme Agreement here today.

The agreement was signed by Bank Islam’s group chief business officer (Institutional Banking), Sharifah Sarah Syed Mohamed Tahir, together with Mohamed Arsad.

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Mohamed Arsad said the cooperative also plans to use part of the sukuk proceeds to venture into new businesses in the real estate sector and increase financing for Sekatarakyat members.

Meanwhile, Sharifah Sarah said the Sukuk Programme Agreement was executed through the special-purpose vehicle company, Sekata Capital Sdn Bhd, with Bank Islam serving as the lead adviser and lead arranger for the proposed sukuk issuance.

"We extend our sincere appreciation to Sekatarakyat for the trust placed in Bank Islam to arrange its inaugural sukuk issuance. 

"This collaboration not only strengthens the strategic relationship between both parties but also underscores Bank Islam's role as a key catalyst in the development of an inclusive and high-impact Islamic capital market.

"As a key industry player, we remain committed to providing innovative Shariah-compliant financial structures, ensuring access for institutional investors, and supporting Sekatarakyat's aspirations for long-term growth and sustainability," she said.

-- BERNAMA