Overwhelming demand for MBSB Bank’s maiden Sukuk

MBSB Bank Bhd has successfully priced its RM300 million sustainability Sukuk Wakalah offering under its RM5 billion sustainability Sukuk Wakalah programme with a final order book of RM2.9 billion, giving the transaction an order bid to cover ratio of 10 times. In a statement, the lender said the overwhelming demand for the offering, which was priced on April 4, allowed the pricing to be further tightened by 30 points across the tenures from the initial price guidance which was on the higher end. The dual-tranche offering, RM200mil five-year tranche and an RM100mil seven-year tranche was finally priced at Malaysian Government Securities plus 95 basis points or a final yield of 4.36% per annum and 4.73% per annum respectively.