KUALA LUMPUR, Oct 8 — Bank Islam Malaysia Bhd (BIMB) became "the first pure-play, full-fledged Islamic financial institution listed on Bursa Malaysia’s Main Market” today after taking over the listing status of BIMB Holdings Bhd (BHB), marking the completion of the Islamic banking group’s restructuring exercise.

With an estimated market capitalisation of RM6.3 billion, BIMB will capitalise on the growth of Islamic finance and the Islamic capital market.

"BIMB is embarking on a five-year business strategy roadmap (LEAP25) to deliver the promise of technology, redefine growth and work in new ways to address the unprecedented challenges brought upon by the Covid-19 pandemic,” said BHB and BIMB chief executive officer Mohd Muazzam Mohamed in a statement today.

Bank Islam will be "accorded full autonomy in undertaking and pursuing its corporate and business strategies and adopt capital management initiatives with the completion of this corporate exercise,” he added. "With the listing, the bank would have access to a wider and diverse capital base, allowing for its efficient use towards greater support of its future expansion programmes and business growth and in addition, the group would have greater scale and ability to support its organic growth.”

Mohd Muazzam explained that the listing also opens opportunities for investors to participate directly in the equity and future growth of the new Bank Islam group, which includes BIMB Investment Management Bhd and BIMB Securities Sdn Bhd.

Through a synergistic and holistic approach, Bank Islam aspires towards a prominent position in offering Shariah-ESG total financial solution through renowned excellence in digital banking and social finance by the year 2025.

"As the world continues battling the Covid-19 pandemic, the group pursues its focus on integrating the principles of Shariah, Value-based Intermediation and environmental, social and governance (ESG) considerations to remain resilient and promote financial inclusion for all,” the bank said.

The restructuring exercise of BHB entails a private placement exercise, a scheme of arrangement to settle outstanding warrants, and the internal reorganisation of subsidiaries.

The internal business realignment measures also included a distribution and capital repayment exercise involving the distribution of BHB’s entire shareholdings in Bank Islam and Syarikat Takaful Malaysia Keluarga Bhd to the shareholders of BHB, and lastly, the transfer of listing status of BHB in the Main Market to Bank Islam.

Concurrently, BHB will become a wholly-owned subsidiary of Bank Islam, with the bank assuming the parent company role. This exercise resulted in Takaful Malaysia becoming a standalone Takaful operator with diversified and strong institutional shareholders. — Bernama