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Sukuk Prihatin

 

 

Sukuk Prihatin Overview

 

The Government of Malaysia is pleased to share that Malaysia is issuing an innovative first-of-its-kind Sukuk Prihatin (“Sukuk Prihatin”) that is open to retail and corporate investors and CIMB is one of the participating distribution banks. Sukuk Prihatin is initiated in response to the public’s request to participate and contribute to the rebuilding of the nation post-COVID-19. Sukuk Prihatin is part of the National Economic Recovery Plan (“Penjana”) which was launched on 5 June 2020 with three (3) main objectives; to empower the Rakyat, propel businesses and strengthen the economy. 

 

Salient Terms and Conditions of Sukuk Prihatin

 

Terms Sukuk Prihatin
Issuer Government of Malaysia (“Government”).
Instruments

Sukuk Prihatin (Scripless).

Utilisation of Proceeds

Proceeds from the Sukuk Prihatin will be channeled to the Kumpulan Wang COVID-19 to finance measures announced in the economic stimulus packages and recovery plan to address the COVID-19 crisis.

 

Sukuk Size Up to RM500 million in nominal value.
Subscription Period

18 August to 17 September 2020.

Issue Date 22 September 2020.
Islamic Principle

Commodity Murabahah (via Tawarruq).

Tenure/Maturity Date The Sukuk Prihatin will have a maturity of two (2) years and will mature on 22 September 2022.
Target Investor (“Eligible Buyer or Applicant”) Eligible Malaysian individuals and corporates.
Profit Rate to Investors

2% per annum (fixed throughout the Tenure).

Frequency of Profit Payments to Investors

Quarterly from the Issue Date. The first profit payment will be on 22 December 2020.
 

Profit payment will be credited directly into the Sukukholders’ account by the Primary Distribution Bank.

Minimum and Maximum Amount of Subscriptions Each application/subscription (initial or subsequent thereafter) amount is at least a minimum of RM500 and in multiples of RM100. There is no maximum subscription limit.
Redemption Principal amount will be credited directly into Sukukholders’ account on Maturity Date by the Primary Distribution Bank.
Transferability and Assignability The Sukuk Prihatin are non-tradable, non-transferable and non-assignable.
Option to Waive Principle on Maturity Date Sukukholders may waive the principal amount due (in part or in full) on Maturity Date, as a contribution to any Government trust account, approved by the Government (“Government Trust Account”).
Tax treatment accorded to Sukukholders

(a) All profit from the Sukuk will be tax exempted.
 

(a) For any principal amount waived (in full or in part) by the Eligible Buyer or Applicant on Maturity Date, the waived amount will be allowed as deduction in the basis period for the year of assessment where the redemption of the Sukuk Prihatin is made.
 

The above tax treatment is only applicable to the Eligible Buyer or Applicant and is not applicable to all Financial Institutions, Capital Markets and Services License holder carrying on the business of fund management under the CMSA and Registered Trustee who acts on behalf of the Eligible Buyer or Applicant. 

Primary Distribution Bank Malayan Banking Berhad (“Maybank”).
Distribution Banks Participating banks as listed on the website.
Distribution Channels Offering is fully digital via Internet/Mobile Banking via JomPAY/DuitNow platform of the Distribution Banks.
Governing Laws Laws of Malaysia.

 

Step by Step Guide on the Application Process

 

 

Investors are advised to read carefully and understand the information disclosed in the Sukuk Prihatin’s Knowledge Pack as well as the Terms and Conditions prior to subscribing.

 

 

Investors are advised to read and understand the contents of this knowledge pack. For more information, please consult your professional adviser.

Subscription is fully digital through BizChannel@CIMB web via JomPAY. 

 

 

 

 

Notification on Application Status

 

  1. Successful and unsuccessful Applicant will be notified via email within fourteen (14) business days from the closing of the offering date of the Sukuk Prihatin.
  2. For unsuccessful applications, the amount will be auto-refunded to your account within five (5) business days from the date of application of the Sukuk Prihatin via Giro.

 

Notes

 

  1. Any application made after 5pm, shall be deemed to be effective only on the next day. Profit shall be calculated from the Issue Date of the Sukuk Prihatin.
  2. For corporate Applicant, please use the same email address that was registered/ recorded in the respective e-channels payment platform (this will be deemed as the authorised and official email address for the purpose of communication throughout the Tenure of the Sukuk Prihatin)
     

 

 

For more on FAQ, please refer to the Frequently Asked Questions for Sukuk Prihatin section in the Knowledge Pack. 

 

 

For more information

 

For more details about Sukuk Prihatin, visit penjana.treasury.gov.my.