Malaysia’s AEON Credit Service Issues MYR 200 Million in Subordinated Sukuk

Based on the IslamicMarkets Sukuk Monitor, on the 12th of March 2020, AEON Credit Service (AEON Credit) issued subordinated Sukuk worth MYR 200 million under its MYR 200 billion Sukuk programme. The Sukuk has a ten year maturity period, with the first optional redemption offered in five years’ time.

The company stated that the proceeds would be used in its day-to-day business activities to provide Shariah-compliant consumer financing, as well as to refinance AEON Credit’s existing Sukuk.

The company stated that it will recognise the subordinated Sukuk as capital (equity), and that this issuance would assist in meeting Bank Negara Malaysia’s minimum capital adequacy ratio requirements.

AEON Credit established its MYR 200 billion Sukuk progra...