IslamicFinance.de

Malaysia Building Society Bhd. (MBSB) will sell the nation’s first covered Islamic bonds to be backed by receivables, offering RM495 million of the debt next month. The sale will be the first portion of a RM3 billion programme announced last month and will be issued by Jana Kapital Sdn, a special-purpose company. The securities have been assigned an AA1 ranking by RAM Rating Services Bhd in Kuala Lumpur. The offer is part of the company’s strategy to expand its business and to cut costs to sustain earnings growth. The company will report record profits this year as its nine-month net income of RM464 million has already surpassed 2012’s full-year total of RM446.7 million.

In the possible merger between Malaysia Building Society Bhd (MBSB) and RHB Capital Bhd (RHBCap), MBSB president and chief executive officer Datuk Ahmad Zaini Othman said MBSB is capable of taking over RHB Islamic. MBSB itself has more than RM30 billion in assets a shareholders' fund of more than RM2 billion and a market capitalisation of RM5 billion on Bursa Malaysia. One option for MBSB is therefore to take over RHB Islamic's RM4 billion assets. Employees Provident Fund (EPF) chief executive officer Datuk Shahril Ridza Ridzuan had said last month that it will let RHBCap and MBSB decide on possible merger plans. The EPF holds a 44.84 per cent stake in RHBCap and 65.5 per cent share in MBSB. Meanwhile, MBSB chairman Tan Sri Abdul Halim Ali said the board of directors is unaware of any plans, is not in talks and has not received any proposals by the shareholders to merge with RHBCap.