SME Bank to raise $963.5M in 3 years through sukuk

SME Bank plans to raise about RM3 billion or US 965.5 million over the next three years through a sukuk issuance.

The bank's Managing Director, Datuk Mohd Radzif Mohd Yunus, said the sukuk, to be issued from July this year, would be government guaranteed Islamic bonds and the proceeds utilised for lending to the market.

"Our actions are in line with the government's Economic Transformation Programme. From the 12 National Key Economic Areas, we are primarily focusing on five, namely, oil & gas, healthcare, education, tourism and the wholesale & retail sectors," he said.

"The bond issuance is part of our new business model, which is to emphasise growth sustainability. The bond will bring our total financing assets to more than RM10 billion after three years. Currently, it's at RM7.9 billion," he added.

He explained that although SME Bank continued to receive funds and grants from the government, the issuance was to sustain the current performance of the bank organically.