MHB Sukuk Murabahah: RM350 Million Raised at 4.48%-4.69%

Quick Answer: Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) completed RM350 million of sukuk murabahah on Nov 6, 2026, split into a RM130 million three-year series at 4.48% and a RM220 million five-year series at 4.69%. The issuance sits under a RM1.0 billion programme and will lift MHB’s borrowings and gearing. MHB says it is not expected to have any immediate material effect on consolidated net assets or earnings per share.

Malaysia Marine and Heavy Engineering Holdings Bhd (KL:MHB) has completed a RM350 million MHB sukuk murabahah issuance on Nov 6, 2026. The Bursa Malaysia filing on Friday shows the sukuk drawn from a programme of up to RM1.0 billion, so this issue uses 35% of the ceiling.

What Are the Two MHB Sukuk Murabahah Series Paying?

MHB sukuk murabahah RM350 million issuance — MHB completed its RM350 million sukuk murabahah issuance on Nov 6, 2026.

MHB issued two series, and the terms differ by tenure and profit rate.

Series 1: RM130 million, three-year tenure, maturing Nov 6, 2029, profit rate 4.48% per annum.
Series 2: RM220 million, five-year tenure, maturing Nov 6, 2031, profit rate 4.69% per annum.

The five-year series makes up 63% of the amount raised. Investors tracking the MHB stock should note that most of the funding is locked in for the longer term.

What Is the Blended Profit Rate on MHB’s RM350 Million?

Weighting each series by its nominal value gives a blended profit rate of about 4.61% per annum. On a simple annual basis, the two profit rates imply roughly RM16.1 million a year in profit payments to sukuk holders. This is our calculation from the stated rates, not a figure from MHB’s filing.

How Much Room Is Left Under the RM1.0 Billion Programme?

After this issuance, RM650 million remains under the programme’s RM1.0 billion ceiling. The filing does not say whether further series will follow.

Why Does Gearing Rise After the Sukuk Issue?

MHB says the issuance will increase its borrowings and gearing, and it will carry financing costs over the tenure of each series. The filing gives no gearing ratio, so the next quarterly report will show the real impact on the balance sheet. MARC Ratings Bhd rates the sukuk AA-IS with a positive outlook, a useful reference point when comparing debt quality. To track gearing trends across Bursa names, read our AI Stock Analysis for Malaysians guide.

Where Will MHB Spend the RM350 Million?

Proceeds go to capital expenditure, working capital, other general corporate purposes and/or advances to MHB’s group of companies. MHB states: “All utilisations will be carried out in a shariah-compliant manner and for shariah-compliant purposes.”

Will the MHB Sukuk Murabahah Dilute Earnings or Net Assets?

MHB says the issuance is not expected to have any immediate material effect on consolidated net assets or earnings per share. The cost shows up gradually, as profit payments run over the three-year and five-year tenures.

Who Arranged the MHB Sukuk Murabahah?

HSBC Amanah Malaysia Bhd: sole coordinator.
HSBC and Maybank Investment Bank Bhd: joint principal advisers, joint lead arrangers and joint lead managers.

Key Takeaways

MHB raised RM350 million through two sukuk murabahah series, completed on Nov 6, 2026.
Profit rates are 4.48% for the RM130 million three-year series and 4.69% for the RM220 million five-year series.
RM650 million remains under the RM1.0 billion programme.
Borrowings and gearing will rise, but MHB expects no immediate material effect on net assets or EPS.
MARC Ratings Bhd rates the sukuk AA-IS with a positive outlook.

Frequently Asked Questions

What is the profit rate on MHB sukuk murabahah?

The RM130 million three-year series carries a profit rate of 4.48% per annum and matures on Nov 6, 2029. The RM220 million five-year series carries 4.69% per annum and matures on Nov 6, 2031.

Is MHB sukuk murabahah rated?

Yes, MARC Ratings Bhd rates the sukuk AA-IS with a positive outlook. The rating applies to the full RM350 million issuance.

Does the MHB sukuk murabahah affect EPS?

MHB says the issuance is not expected to have any immediate material effect on consolidated net assets or earnings per share. The financing costs will accumulate over each series’ tenure.

How much of MHB’s sukuk murabahah programme is still available?

RM650 million remains under the programme’s RM1.0 billion limit after the RM350 million issuance. MHB’s filing does not say when or whether it will issue further series.

This article is general information, not personal financial advice. Do your own research and consider your own circumstances before investing on Bursa Malaysia.

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