United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has successfully priced a RM750 million issuance under its existing RM5 billion Sukuk Wakalah Programme, marking a significant development in its funding strategy and reinforcing investor confidence in its long-term prospects.
In an official statement, the bank confirmed that the Basel III-compliant Tier 2 subordinated Islamic medium-term notes (Tier 2 Sukuk Wakalah) were priced on 19 June at a profit rate of 3.85% per annum. This reflects a 36 basis point spread over the seven-year Malaysian Government Securities (MGS) benchmark.
The sukuk, which carries an AA1 rating by RAM Ratings, is scheduled for issuance on 3 July 2025 and will mature on 3 July 2037. An optional redemption date has been set for 2 July 2032.
Initially targeting RM500 million, the offering was upsized to RM750 million in response to robust demand from a broad base of more than 20 institutional investors. The investor mix included insurance companies, fund managers, government-linked investment entities, as well as domestic and international banks and private banking institutions.
Ng Wei Wei, Chief Executive Officer of UOB Malaysia, stated that the upsizing of the sukuk issuance underscores market confidence in the bank’s credit fundamentals and strategic direction.
“This transaction also demonstrates the depth and maturity of Malaysia’s Islamic debt capital market, which continues to draw strong interest from a wide range of quality investors,” she said. “It reflects both the resilience of the country’s financial ecosystem and the strength of its economic fundamentals.”
UOB Malaysia and CIMB Investment Bank acted as joint lead managers for the issuance.
-The Edge
