5 April 2016

5 April 2016

First-of-its-kind Islamic term facility in Singapore backed by a hotel as an underlying security

A first-of-its-kind $260m Islamic financing deal backed by a 442-key mid-tier hotel as an underlying security, has been inked between RB Capital, one of Singapore's fastest-growing real estate groups, and Maybank, the largest Islamic bank in ASEAN. The landmark deal involved Holiday Inn Express Singapore Clarke Quay as the underlying security and is a boost to the Islamic banking industry in Singapore.

Hospitality-related assets are not typical in Islamic financing, which makes this the first to be done in a secular country, and also one of the biggest Islamic deals in Singapore. With the global Islamic finance industry forecasted to double to $3.4 trillion by 2018 , the deal demonstrates the opportunities available for Islamic funds to diversify and invest into different asset classes via Singapore as an international financial gateway.

Venture into Islamic financing a first for RB Capital

This is the first foray by RB Capital into Islamic financing and exemplifies the group's readiness to explore new frontiers.

Mr Kishin RK, CEO of RB Capital said, "The deal is competitive to conventional financing. In addition, it provides RB Capital with the ability to further explore Islamic-compliant investments and financing regionally".

Mr Kishin added, "We are delighted to have worked with Maybank to execute a first-of-a-kind deal in Singapore to meet the growing demand from Islamic investors".

Deal charts a significant milestone for ASEAN's largest Islamic banking player

Mr Lim Hong Tat, CEO of Maybank Singapore said, "As the largest Islamic banking player in ASEAN, Maybank has the deep expertise to structure financing deals tailored for our customers' needs, and help them to tap into opportunities and new sources of funding."

"We are proud to partner RB Capital in making this progressive mark on Singapore's Islamic Banking landscape. We are also thankful for the confidence they have placed in us to structure this deal for them," Mr Lim said.

The bank is continuously looking at growing its Islamic banking business in the region, especially in Singapore and Indonesia which each currently account for about 5 per cent of Maybank Islamic's revenue.

"The retail market in Singapore is very competitive but we have managed to make inroads by focusing on serving the community and offering Islamic financing options for our various products, as well as facilitating cross-border transactions. Although the Islamic finance market here is relatively small, we plan to continue growing this market as long as we are able to create value for our customers and generate good returns," Mr Lim said.

Maybank Group's Islamic Banking business in 2015 surged 20.4% in total income compared to the year before. Maybank Islamic maintained its position as the top Islamic bank in Malaysia with a 28% market share of Islamic assets in the country, and ranked fourth in the Global Sukuk League Table for FY 15 with a market share of 8.6% from 106 issues totalling US$2.96 billion. For the financial year ended December 31, 2015, Maybank Islamic's total assets exceeded US$36 billion.

Maybank – Humanising Financial Services

Maybank is among Asia's leading banking groups and South East Asia's fourth largest bank by assets. The Maybank Group has an international network of 2,400 offices in 20 countries namely Malaysia, Singapore, Indonesia, Philippines, Brunei Darussalam, Vietnam, Cambodia, Thailand, Hong Kong SAR & People's Republic of China, Bahrain, Uzbekistan, Myanmar, Laos, Pakistan, India, Saudi Arabia, Mauritius, Great Britain and the United States of America. The Group offers an extensive range of products and services, which includes consumer and corporate banking, investment banking, Islamic banking, stock broking, insurance and takaful and asset management. It has over 46,000 employees serving more than 22 million customers worldwide. (www.maybank.com)

Maybank is committed to bringing seamless banking and a wider spectrum of value-added financial services to our valued customers. By harnessing the latest technological advances to increase our network's effectiveness, our customers are able to conduct their banking transactions at anytime and anywhere in the world, via the traditional as well as electronic channels.

Maybank Singapore is one of the Group's largest overseas operations. As at December 2015, Maybank's total assets in Singapore were S$61 billion. With 1,800 employees, we are well-positioned to provide highly personalised services and locally-oriented approaches, which will further enhance the Bank's standing in the local banking scene.