Page 274 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2023 (18 JAMADIL AKHIR 1445H)

22. PROVISION FOR ZAKAT AND TAXATION
Group Bank
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000

Zakat 10,618 5,114 10,320 4,655
Taxation 29 689 - -
10,647 5,803 10,320 4,655

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. SUBORDINATED SUKUK
Subordinated sukuk as at 31 December 2023 relates to two tranches of Subordinated Sukuk Murabahah (Series 2 and
Series 3) which qualifies for Tier 2 capital under the BNM Policy Document on Capital Adequacy Framework for Islamic
Banks (Capital Components). The sukuk carries a tenure of 10 years from the issue date, callable on the 5th anniversary
date from the Issue date and on every profit payment date thereafter. Table below depicts a summary of the current
Subordinated Sukuk Murabahah.

Issue date Callable Date Maturity Date Profit Rate (% p.a) Nominal Value
15 June 2021 15 June 2026 15 June 2031 4.50%, payable semiannually RM500.0 million

20 July 2022 20 July 2027 20 July 2032 5.33%, payable semiannually RM300.0 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.

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