REPORT: SC Formulates Framework For Agrosukuk Issuance

Bernama, 28 September 2012

KUALA LUMPUR, Sept 28 (Bernama) -- The Securities Commission (SC) has formulated a framework for retail bond and sukuk issuances, AgroSukuk, by companies in the agriculture industry, Prime Minister Datuk Seri Najib Tun Razak said.

He said AgroSukuk issuance would help garner capital to finance companies in the agriculture and agro-based industries and consequently drive the country's capital and equity market.

To encourage the issuance of retail bonds and sukuk, the government has proposed that expenses for issuing sukuk be given double tax deductions for four years from the 2012 year of assessment till 2015.

For a start, DanaInfra Nasional Bhd will issue retail bonds worth RM300 million by end-2012 to finance the development of the MRT project, Najib said when tabling the 2013 Budget in Parliament today.

This will also enable retail investors to hold equity in the bond and sukuk market.

At the same time, individual investors will be also given stamp duty exemption on instruments relating to the transactions of retail bonds and retail sukuk.

To ensure an effective and holistic promotion of the Malaysian capital market internationally, the SC will establish a Capital Market Promotion Centre, he said.

The centre will adopt an integrated approach across various segments in the capital market and provide consistent initiatives to position Malaysia as a centre of investment and fund raising. – BERNAMA

(Web Source: http://www.bernama.com/bernama/v6/newsindex.php?id=698273)