Malaysia's Sukuk Prihatin wins IFN's global deal of the year award

"After great deliberation, it has been decided by the independent IFN Awards Board that the Sukuk innovation that is Malaysia's Sukuk Prihatin is 2020's IFN Overall Deal of the Year," International Financial News (IFN), which is part of REDmoney Group, announced Tuesday.

It also won IFN's Most Innovative Deal and Malaysia Deal of the Year award.

"Retail Sukuk offerings are few and far between in the corporate Sukuk-dominated Malaysian market and the Sukuk Prihatin, brought to market on a digital vehicle, proved the immense latent demand for Shariah compliant purpose-driven investment instruments," it said in a statement here.

Besides Sukuk Prihatin, IFN said there were four landmark deals by four outstanding issuers from diverse markets, namely Saudi Electricity Company's US$44.78 billion (US$1 = RM4.05), Egypt's largest local-denominated private sector debt by ACP and DP World Salaam's US$1.5 billion facility which has the distinction of being the first corporate hybrid with an international rating.

The Sukuk Prihatin facility was uniquely structured with 'national solidarity' as the main theme, where investors not only earn returns from the subscription but also have the option of donating the principal amount (in part or full) upon its two-year maturity, said IFN.

This donation contribution will be eligible for a special tax treatment, an incentive from the government to encourage contribution. Maybank was the sole arranger for the Sukuk Prihatin, which was distributed via Malaysian banks' digital platforms.

Sukuk Prihatin's digital, retail and charitable features are all concepts which may be adopted globally, creating a smoother and more unique Sukuk market.

The Sukuk Prihatin facility is the Malaysian government's maiden digital Sukuk, allowing subscriptions via internet/ mobile banking platforms accessible across 27 participating banks, creating a new ecosystem in the market which may be further developed to allow other issuers to consider for their fundraising and to enhance retail investors' access to Sukuk instruments.

"Being proactive has long been a feature of the Malaysian market, and we all hope that it becomes infectious, leading to a more vibrant global Islamic finance market," said IFN.