Gulf International Bank (GIB) has announced the establishment of a Malaysian ringgit 3.5 billion ($1.11 billion) Sukuk Al-Wakalah medium-term note (MTN) program in Malaysia. The Islamic MTN program is based on the Shariah principle of Wakalah, said a bank statement Sunday. CIMB Investment Bank Berhad and Standard Chartered Saadiq Berhad are the joint lead arrangers, while GIB Capital, GIB's investment banking arm, is the international coordinator of the sukuk program. Malaysia-based RAM Ratings has assigned an indicative rating of AA1 to GIB's sukuk program, which will be conducted through a special purpose company, Gulf Sukuk I Company, said the statement. GIB Chairman Jammaz Bin Abdullah Al-Suhaimi said: "The sukuk program represents a strategic move to tap into the ringgit market in an effort to diversify funding avenues and currencies for the bank." "The road show was very successful and included intensive investor presentations. We are very pleased with the interest shown by these investors and expect an issuance of sukuk in the near future when the market conditions are convenient," said Dr. Yahya A. Alyahya, GIB chief executive officer.
