Islamic Finance

Malaysia issues digital retail sukuk for COVID-19 economic recovery

Malaysia’s ministry of finance on Tuesday (August 18) issued the government’s first digital retail sukuk as part of the national economic recovery plan.

The sukuk’s target issuance is 500 million ringgit ($119.4 million), said the ministry in a statement. It has a tenure of two years and carries a profit rate of 2%.

The commodity murabahah retail sukuk will be allocated on a first-come-first-served basis to interested investors who must be Malaysians and at least 18-years-old.

It can be subscribed through digital payment channels JomPay and DuitNow, both of which are accessible via mobile banking platforms of 27 participating banks. Maybank is the primary distribution bank for the sukuk.

The minimum subscription is 500 ringgit and there is no maximum limit, said the ministry.

The subscription period is open from August 18 to September 17.

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