AmInvestment Bank Berhad (AmInvestment Bank), successfully acted as Joint Lead Manager for Cagamas Berhad’s inaugural MYOR-i-based Sukuk issuance. The transaction was a significant milestone for Malaysia’s Islamic capital markets, being the nation’s first Floating Rate Note (FRN) linked to the Malaysia Islamic Overnight Rate (MYOR-i), which was introduced by Bank Negara Malaysia (BNM) in March 2022 to facilitate the transition from the Kuala Lumpur Interbank Offer Rate (KLIBOR) to a more transparent and reliable pricing reference for Islamic financial products based on actual, completed transactions, making it more accurate and immune to market manipulation.

The inaugural RM300.0 million issuance represents a milestone in Malaysia’s Islamic capital market development, paving the way for broader adoption of MYOR-i as the benchmark for Ringgit-denominated floating-rate capital market transactions. As Malaysia’s first MYOR-i-referenced Sukuk, the transaction supports BNM’s ongoing efforts to deepen the transition from KLIBOR and aligns with its direction for MYOR-i to become the mandatory benchmark rates from July 2027.

Building on its track record in benchmark transactions, AmInvestment Bank previously led Cagamas Berhad’s first Malaysia Overnight Rate (MYOR)-based FRN issuance in 2022, amounting to RM200.0 million. Together with the current MYOR-i-based Sukuk issuance, these transactions highlight AmInvestment Bank’s leadership in facilitating the adoption of new reference rates and advancing the development of Malaysia’s Ringgit capital market.

Jamil Baharuddin, Head of Group Treasury and Markets, AmBank Group added that, “We are honoured to support this landmark Sukuk issuance, the first to reference MYOR-I, marking a important milestone in Malaysia’s transition from KLIBOR to a more transparent, transaction-based benchmark rate. This transaction underscores our commitment to advancing a resilient, transparent and future ready Islamic financial market while supporting the continued development of Malaysia’s capital markets.”