The maiden issuance of an Islamic investment note on the 51:49 joint venture platform between Bursa Malaysia and RAM Holdings, BR Capital, was fully subscribed shortly after going live on the 25th July 2024.
This Islamic investment note on BR Capital has a tenure of two years and a profit rate of 7.65% per year. It is rated ‘R4’ by RAM Rating Services, indicating an “adequate safety for payment of financial obligations”.
Incorporated on the 27th December 2022, BR Capital is an unusual direct initiative by entities usually seen to be acting as self-regulating entities or monitoring institutions – in a financial space typically championed by private start-ups and fintechs.
It is part of Bursa Malaysia’s multi-asset exchange strategy to create diverse fundraising and investment opportunities, said Muhamad Umar Swift, CEO of Bursa Malaysia and the chairman of BR Capital.
The main aim is to introduce new fixed income investment alternatives through the creation of new Shariah compliant as well as ESG funds.
This P2P-financing platform is governed by the Securities Commission Malaysia. Investors provide loans to individuals or businesses, and in return, they receive profit payments repaid over a specified period. Investors do not acquire ownership stakes in the borrower’s business.
Pitches are for at least RM5 million (US$1.09 million) with a minimum one-year tenure. The debut issuance for self-service laundry outlet operator City Coin Technology reserved RM4.5 million (US$977,580) for the institutional tranche and the remainder RM500,000 (US$108,620) for individuals.
BR Capital is already on its second Islamic investment note for automotive parts manufacturer PEPS-JV (Melaka), which is raising up to RM10 million (US$2.17 million). Funds raised will go towards the initial development of a completely knocked-down manufacturing and vehicle assembly facility in the state of Melaka.
The debut date has yet to be announced for this Islamic investment note with a three-year tenure and a potential profit rate of up to 7% per annum. This second issuance is rated ‘R3’ by RAM Rating Services indicating an “adequate safety for payment of financial obligations”.
