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258    BANK MUAMALAT MALAYSIA BERHAD                   About Us           Our Leadership       Our Strategy
            ANNUAL REPORT FY2020


          Notes to the fiNaNcial statemeNts
          31 December 2020 (16 JamaDil awal 1442h)







          22.   PrOvISION FOr ZAkAT AND TAxATION
                                                                       Group                        Bank
                                                            31 December    31 December    31 December    31 December
                                                                   2020           2019          2020          2019
                                                                  rM’000        rM’000        rM’000        rM’000


              Zakat                                                4,349         4,182         4,280         4,108
              Taxation                                               29          5,346             -         5,164

                                                                   4,378         9,528         4,280         9,272


          23.   rECOurSE OBLIGATION ON FINANCING SOLD TO CAGAMAS

              This represents the proceeds received from house financing sold directly to Cagamas Berhad with recourse to the Bank. Under
              these agreements, the Bank undertakes to administer the financing on behalf of Cagamas Berhad and to buy-back any financing
              which are regarded as defective based on prudential criteria set by Cagamas Berhad. These financial liabilities are stated at
              amortised cost.


          24.  Sukuk
              (a)   Subordinated sukuk

                   On 15 June 2016, the Bank set up a 20-year Subordinated Sukuk Murabahah Programme  of  up to RM1.0  billion
                   (“Subordinated Sukuk Programme”), which qualified  as  Tier  2  capital  under  the  BNM   Policy  Document  on  Capital
                   Adequacy Framework   for   Islamic  Banks   (Capital Components).  The initial Subordinated Sukuk Murabahah under the
                   Subordinated Sukuk Programme was issued on 15 June 2016.  Table below depicts a summary of the initial Subordinated
                   Sukuk Murabahah.

                    Issue date       Call Date        Maturity Date    Profit rate (% p.a)         Nominal value
                    15 June 2016     15 June 2021     15 June 2026     5.80%, payable semi-annually  RM250.0 million

                   The Bank may redeem (in whole or in part) the initial Subordinated Sukuk Murabahah prior to maturity on the Call Date,
                   subject to the redemption conditions under the principal terms and conditions of the Subordinated Sukuk Programme
                   being satisfied.

              (b)   Senior sukuk
                   On 7 June 2016, the Bank set up a 15-year Senior Sukuk Programme of up to RM2.0 billion (“Senior Sukuk Programme”)
                   Table below shows the details of the current outstanding Senior Sukuk under the Senior Sukuk Programme.

                    Issue date            Maturity Date          Profit rate (% p.a)         Nominal value
                    25 November 2016      25 November 2021       5.50%, payable semi-annually  RM500.0 million
   255   256   257   258   259   260   261   262   263   264   265