Malaysia's Sukuk Prihatin, an initiative under the government's PENJANA package, has been oversubscribed with a total subscription of more than RM666mn, surpassing the original issuance target of RM500mn.

"Given this overwhelming response and deserving applicants, the government (has) decided to issue an additional subscription of RM166mn," Finance Minister Tengku Zafrul Aziz has said

The Malaysia government launched Sukuk Prihatin in August, to open up opportunities for Malaysians to contribute to the government's efforts to rebuild the country's economy post-COVID-19. The funds raised will be channelled to initiatives such as improving connectivity in rural schools, supporting micro-entrepreneurs, and infectious disease research.

The subscription period for the initiative lasted from 18 August 2020 to 17 September 2020, through JomPAY and DuitNow and, according to Minister Zafrul, is a "proud and historic milestone for the first digital sukuk of its kind in Malaysia."

With the closing of the subscription period on 17 September, the Sukuk Prihatin will be issued on 22 September 2020 with a maturity of two years. It offers a one-year profit rate that will be tax-exempt and paid quarterly. Sukuk holders also have the option to donate part or all of the principal amount of the subscription during the restricted investment period on 21 September 2022.

Photo / 123RF

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