MARC Ratings has affirmed its AAAIS rating on MBSB Bank Berhad’s Structured Covered Sukuk Murabahah Tranche 4, with a stable outlook.
The rating affirmation reflects Tranche 4’s substantial credit enhancement, underpinned by its fully cash-collateralised position. As at end-June 2026, designated account balances of RM348.5 million were sufficient to cover the RM215.0 million outstanding sukuk and remaining profit obligations. Principal receivables of RM452.8 million provided additional support, resulting in strong over-collateralisation of 210.6%.
MBSB Bank established the RM2.295 billion structured covered sukuk facility to facilitate the transfer of Islamic assets and liabilities from its holding company, MBSB Berhad. The sukuk benefits from dual recourse to MBSB Bank as a senior unsecured obligation upon default, and to Jana Kapital Sdn Bhd, the special-purpose vehicle that guarantees the cover pool held in trust by MBSB Bank. As at end-June 2026, RM215.0 million of Tranche 4’s original issuance of RM810.0 million remained outstanding.
Tranche 4 is backed by personal financing facilities extended to civil servants, with repayments collected through mandatory salary deductions administered by Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA). The payroll deduction mechanism supports repayment discipline and mitigates delinquency risk.