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RM20 million Ar-Rahn 5 oversubscribed by 1.56 times on IAP Bernama Wednesday 18 September 2019


RM20 million Ar-Rahn 5 oversubscribed by 1.56 times on IAP


KUALA LUMPUR, Sept 18 -- Bank Muamalat Malaysia Bhd's investment offering of RM20 million in Project Ar-Rahn 5 has been oversubscribed by 1.56 times on the Investment Account Platform (IAP).

The campaign period for Ar-Rahn 5 started yesterday until Sept 27, 2019, with the project scheduled to commence in early October for a tenure of six months.

"The indicative returns to investors remain attractive at 6.15 per cent per annum despite the reduction in overnight policy rate by 25 basis points to 3.00 per cent by the Monetary Policy Committee of Bank Negara Malaysia on May 7, 2019," said IAP Integrated Sdn Bhd, that owns and operates the platform in a statement today.

Its chief executive officer, Joann Maryam Enriquez, remarked that Bank Muamalat, as in the previous 4 Ar-Rahn listings, will undertake an allocation exercise of the investment in view of the oversubscription.

She added that this was also the first time that a sponsoring bank allocated a portion of the investment to its high net worth clients through the bank's private banking network.

Similar to the four previous Ar-Rahn listings in 2017, 2018 and 2019, Project Ar-Rahn 5 is an investment in a share of aggregate capital contribution of Muamalat Venture Sdn Bhd (MVSB), a wholly-owned subsidiary of Bank Muamalat, under the Musharakah joint venture with Permodalan Kelantan Bhd in selected branches of its Islamic pawn broking (Ar-Rahn) business activities.

Further information on Project Ar-Rahn 5 and IAP can be found at www.iaplatform.com.