is a Shariah compliance long-term profit-based Government securities issued based on Commodity Murabahah structure. SPK is issued by the Government of Malaysia under the Housing Loan Fund Act 1971 to refinance funding for housing loans to Government civil servants and to extend new Government housing loans. The funds were previously raised through loans but is now replaced with sukuk issuances, consistent with the Government's continuous support in developing the Malaysian sukuk market.
In the primary market, SPK is issued under the sukuk structure of Commodity Murabahah via the Principal Dealers network. it is tradable under the Bay' Al-Dayn principle. SPK pays out a periodic profit payment on a semi-annual basis and is redeemable at par upon maturity.
Similar to Malaysian Government Securities (MGS) and GII, SPK is classified as RENTAS specified securities and will therefore adhere to all guidelines pertaining to it. Sukuk Perumahan Kerajaan has also been approved by BNM Shariah Advisory Council (SAC) and will be accorded with the following regulatory treatment:
(i) 0% risk weight under the Risk-Weighted Capital Adequacy Framework for conventional banks and the Capital Adequacy Framework for Islamic Banks;
(ii) Class-1 liquefiable assets under the Liquidity Framework, subject to a yield slippage of 2%;
(iii) Eligible collateral for Standing Facility:
(iv) Excluded from Single Customer Credit Limit;
(v) 0% risk charge under the Risk-Based Capital Framework for Insurers; and
(vi) Holdings of SPK in the trading book can be deducted from the eligible liabilities base for the purpose of computing the SRR. For PDs, entire holdings of SPK can be deducted from the eligible liabilities base for SRR computation.