Maybank proposes $3 bln subordinated sukuk programme

KUALA LUMPUR, March 26 Wed Mar 26, 2014 6:09am EDT

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KUALA LUMPUR, March 26 (Reuters) - Maybank Islamic Bhd, the largest sharia bank in Southeast Asia, will set up a 10 billion ringgit ($3.03 billion) subordinated sukuk programme, ratings agency RAM ratings said on Wednesday.

RAM gave an AA1 or 'stable' rating for the program, citing the firm's "strategic importance" as the Islamic banking arm of Maybank.

"Maybank Islamic is highly integrated with Maybank and leverages on its parent's risk-management systems, infrastructure and extensive branch network," said RAM.

Papers under the sukuk program are compliant with Basel-III standards and qualify as Tier 2 capital under the central bank's capital adequacy framework, it said. ($1 = 3.3045 Malaysian Ringgit) (Reporting By Al-Zaquan Amer Hamzah; Editing By Kim Coghill)

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