IslamicFinance.de

Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) is getting closer to reaching its target of turning into a full-fledged shariah development finance institution (DFI) with its Islamic financing portfolio now standing at 86.5 per cent amounting to RM4.31 billion. The target is to achieve 90 per cent Islamic financing portfolio by December 2015. When SME Bank was set up in October 2005, the Islamic financing portfolio was only 15 per cent. Group managing director, Datuk Mohd Radzif Mohd Yunus, said convincing customers to switch to Islamic financing was not a major challenge. SME Bank, through its unit, Centre for Entrepreneur Research and Development Sdn Bhd, and Islamic Banking and Finance Institute of Malaysia, developed and conducted the Chartered Islamic Development Banker programme.

A government- guaranteed Islamic medium-term notes programme (IMTN) with a tenure of up to 20 years in weight of RM3 billion will be issued by the Small and Medium Enterprises Bank Bhd (SME Bank). According to the bank's managing director, the first issuing will be in accordance with the investment structure knon as the wakalah structure. AmInvestment Bank Bhd, Kuwait Finance House (M) Bhd and Maybank Investment Bank Bhd are appointed as the joint lead arrangers and joint lead managers for the sukuk.