Bank Islam Integrated Annual Report 2020

17. RECOURSE OBLIGATIONS ON FINANCING SOLD TO CAGAMAS Recourse obligations on financing sold to Cagamas represents house financing accounts that are sold to Cagamas with recourse. Under the agreement, the Bank undertakes to administer the financing on behalf of Cagamas and to buy back any financing which are regarded as defective based on pre-determined and agreed-upon prudential criteria with recourse against the Bank. Such financing transactions and the obligation to buy back the financing are reflected as a liability on the statements of financial position. The financing are not de-recognised and are analysed in Note 8. 18. SUBORDINATED SUKUK MURABAHAH Group and Bank Note 2020 RM’000 2019 RM’000 Issued under the RM1.0 billion Programme First tranche (a) – 303,356 Second tranche (b) – 400,964 Third tranche (c) 302,046 302,046 302,046 1,006,366 Issued under the RM10.0 billion Programme First tranche (d) 302,243 302,328 Second tranche (e) 403,904 – Third tranche (f) 704,971 – 1,411,118 302,328 1,713,164 1,308,694 Finance cost on Subordinated Sukuk Murabahah 73,622 69,940 The details of the issued subordinated Sukuk are as follows: Note Nominal value RM’000 Issue date First call date* Maturity Date Profit rate (% p.a.) # (a) 300,000 22 April 2015 22 April 2020 22 April 2025 5.75 (b) 400,000 15 December 2015 15 December 2020 15 December 2025 5.50 (c) 300,000 13 November 2017 12 December 2022 12 November 2027 5.08 (d) 300,000 7 November 2018 7 December 2023 7 November 2028 5.15 (e) 400,000 26 March 2020 26 March 2025 26 March 2030 3.75 (f) 700,000 21 October 2020 21 October 2025 21 October 2030 3.60 * Optional redemption date or any periodic payment date thereafter. # Accrued and payable semi-annually in arrears. The Subordinated Sukuk Murabahah qualifies as Tier II capital for the computation of the regulatory capital of the Bank in accordance with the Capital Adequacy Framework (Capital Components) for Islamic Banks issued by BNM. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 247