United Overseas Bank’s push into Islamic finance crystallised with the establishment of a sukuk wakalah programme capped at RM5 billion ($1.16 billion). Within that framework, the bank printed a debut RM500 million tier 2 sukuk, an instrument designed to shore up capital while opening the door to Shariah-compliant investors.
Interest was deep and varied: 42 accounts ranging from fund managers and takaful operators to private banks, commercial lenders and corporates took part. An estimated 25%–30% of the notes found their way into Shariah-compliant portfolios, underscoring management’s strategy of diversifying the investor base beyond conventional buyers.
The transaction also broke new ground for Malaysia’s capital market. It marked the country’s debut ringgit sukuk issuance and was the first public tier 2 sukuk in the domestic market issued by a foreign-owned bank.
CIMB, acting as principal adviser, lead arranger, bookrunner and sole lead manager, steered the offering from programme setup to final book close.
