PKB raises RM35 million to expand Ar-Rahn operations
PKB and Maybank Investment Bank describe the issuance as Malaysia's first social sukuk from a state agency.
A RM35 million social sukuk issued by Permodalan Kelantan Bhd (PKB) will fund expansion of its Ar-Rahn Islamic pawnbroking business, the company and Maybank Investment Bank Bhd said in a joint statement. The money will enable Ar-Rahn to offer more financing and add branches.
The statement described the transaction as Malaysia's first state-agency social sukuk. It forms part of PKB's RM300 million sukuk wakalah programme and follows a RM265 million issuance through which the company first entered the Islamic debt capital market.
According to the two organisations, the framework aligns with three standards: the Securities Commission Malaysia's Sustainable and Responsible Investment Sukuk Framework, the Asean Social Bond Standards and the International Capital Market Association's Social Bond Principles.
Maybank Islamic Bhd was the sole subscriber and shariah adviser. Maybank Investment Bank Bhd's responsibilities included acting as sole principal adviser, arranging and managing the issuance, advising on sustainability structuring and serving as facility agent.
PKB is fully owned by Perbadanan Kemajuan Iktisad Negeri Kelantan (PKINK). Its Ar-Rahn operation dates to March 1992 and has 35 branches in nine locations: Kelantan, Pahang, Selangor, Kuala Lumpur, Kedah, Perlis, Johor, Sabah and Sarawak.
