2. CAPITAL ADEQUACY (CONTINUED) 2.1 Capital Management (continued) Capital Instrument Capital Component Main Features 2) Sukuk Murabahah Programme of up to RM10.0 billion (Programme 2) a) Tranche 1: RM300 million at 5.15% • • Type: Subordinated Sukuk Murabahah • • Issued on 7 November 2018 • • Mature on 7 November 2028 Tier 2 Capital • • Each of the Subordinated Sukuk Murabahah may have a call option to allow the Bank to redeem the relevant tranche of the Subordinated Sukuk Murabahah (in whole or in part) on any periodic profit payment date after a minimum period of five (5) years from the issue date of that tranche, subject to the relevant early redemption conditions being satisfied. • • Unsecured. • • Subordinated Sukuk Murabahah shall be utilised to f inance the Bank ’s Islamic banking activities , working capital requirements and other corporate purposes and/or, if required, to redeem any outstanding Sukuk Murabahah issued under both programmes . All utilisation shall be Shariah Compliant. • • Upon the occurrence of a Non-Viability Event, BNM, jointly with PIDM, shall have the option to require the entire or part of the nominal value of the outstanding Subordinated Sukuk Murabahah, and all other amounts owing under the Subordinated Sukuk Murabahah to be written off. • • No Conversion into Equity. b) Tranche 2: RM400 million at 3.75% • • Type: Subordinated Sukuk Murabahah • • Issued on 26 March 2020 • • Mature on 26 March 2030 c) RM700 million at 3.60% • • Type: Subordinated Sukuk Murabahah • • Issued on 21 October 2020 • • Mature on 21 October 2030 d) RM300 million at 4.10% • • Type: Subordinated Sukuk Murabahah • • Issued on 12 November 2021 • • Mature on 12 November 2031 Total outstanding Subordinated Sukuk Murabahah issued under both programmes which are qualified as Tier 2 regulatory capital of the Bank and the Group as of 31 December 2021 is RM2.0 billion. 2.2 Internal Capital Adequacy Assessment Process (“ICAAP”) The Group has carried out the internal assessment process on capital as prescribed in BNM’s CAFIB – ICAAP (“Pillar 2”) to complement its current capital management practices. The first ICAAP Document Policy was formalised and approved by the Board in March 2013 and is being reviewed on an annual basis. The Group’s ICAAP helps to suggest the minimum internal capital requirement for its current and future business strategies and financial plans for the next three (3) years via a comprehensive risk assessment process on its portfolio risk exposures, its risk management practices towards its material risks and potential capital planning buffer required in the event of stress. INTEGRATED ANNUAL REPORT 202 1 379 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information
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