Société Générale is set to launch a multi-currency Islamic medium term note (IMTN) programme in Malaysia after receiving the requisite approvals in mid-June.
The proposed IMTN programme, with a nominal value of up to RM1bn ($311.4m) and a tenure of up to 15 years, has been approved by Bank Negara Malaysia (BNM) as well as the Securities Commission of Malaysia.
The French bank said that this development demonstrates its commitment to meeting the dynamic needs of its diverse client base in the region and globally by continually enhancing its product offering.
“Given the advancement of Islamic finance in recent years and the importance of the Malaysian and Southeast Asian capital markets to its business, Société Générale stands ready to issue out of its IMTNs programme at the right market conditions and timing,” it said.
Hong Leong Islamic Bank Berhad will act as the lead arranger on the deal and Société Générale’s principal adviser.
Amanie advisers Sdn Bhd, Société Générale’s Shariah adviser, has also certified the Shariah compliance of the IMTNs with respect to the proposed structure and mechanism, which will be issued under the Shariah principle of Sukuk Wakalah Bil Istithmar via a new and dedicated offshore incorporated issuance entity.
In addition, RAM Ratings, Malaysia’s rating agency, has assigned the proposed IMTNs programme a AAA(s)/Stable rating and reaffirmed Société Générale’s AAA/Stable/P1 financial institution rating.
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