After receiving a good response from general public on Sukuk Simpanan Rakyat (SSR) launched last year, Government will be issuing a new RM3bil worth of Sukuk 1Malaysia 2010.
Bank negara was appointed on behalf of The Ministry of Finance to issue the Sukuk. The sukuk, which will be scripless and based on Shariah principles.
It has a 3-year tenure and offers a return of 5% per annum. Profit payments will be made on a quarterly basis through the sukukholders’ accounts with their agent banks.
If you are interested to subsrcribe, you may apply during the subscription period starting from 20th May to 9th June 2010. You better make a quick decision as the previous Sukuk Simpanan Rakyat (SSR) were fully subscribed within nine days.
The minimum subscription in Sukuk 1Malaysia 2010 is RM1,000 with a maximum of RM50,000 per subscriber.
Sukuk 1Malaysia 2010 can be subscribed at most commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Agrobank.
Beginning 22 June 2010, investors can sell and purchase the sukuk at agent banks. The purchase of sukuk is based on a first-come first-served basis, with no maximum limit, subject to the availability of the sukuk sold by existing sukukholders.
Below are the key features of Sukuk 1Malaysia 2010
|Sukuk type||Based on commodity Murabahah (mark-up) contract|
|Profit to investors||5 % per annum, paid quarterly|
|Eligible buyers||Malaysian citizens who are 21 years and above|
|Form of instrument||Scripless|
|Tax exemption||Returns on the sukuk are exempted from tax|
|Transferability and assignability||Negotiable and transferable through sale and purchase of sukuk at agent banks|
|In the event of the death of sukukholder, the prevailing inheritance law will apply|
|Initial subscription amount||Minimum subscription: RM1,000 (in multiples of RM100)|
|Maximum subscription: RM50,000|
Resaleable feature of Sukuk 2010 (Commencing 22 June 2010)
|Allocation of Sukuk||First-come first-served|
|Resaleable Amount||Minimum sell/purchase per investor is RM100 (in multiples of RM100)|
|No maximum holding per investor (subject to availability)|
|Pricing||Daily prices based on principal at par plus accrued profit|
|Administrative cost of 0.1% of the nominal value of sukuk purchased payable to agent banks|