Kelantan agency issues RM35 million social sukuk to expand Ar-Rahn
The issuance is Malaysia’s first social sukuk by a state agency and will support Islamic pawnbroking operations and new branches.
Permodalan Kelantan Bhd has raised RM35 million through social sukuk to support its Ar-Rahn Islamic pawnbroking business. It is the first social sukuk issued by a Malaysian state agency, as well as Kelantan’s first.
The transaction falls under the company’s RM300 million sukuk Wakalah programme. An initial RM265 million issuance took place in November 2025, when Permodalan Kelantan became the first sukuk issuer in the state.
Chairman Datuk Ahmad Yaakob said the funding would help Ar-Rahn expand and make Islamic financial services accessible to more people. The financing will bolster operations and financing capacity, while enabling branches to open in locations with strong potential. The expansion is expected to benefit micro-entrepreneurs and underserved communities.
Established on March 12, 1992, Ar-Rahn became Malaysia’s first commercial Islamic pawnbroking institution. It now has 35 branches across nine states. Its expansion is expected to increase Permodalan Kelantan’s income-generating capacity and support the performance of parent company Perbadanan Kemajuan Iktisad Negeri Kelantan (PKINK).
Maybank Investment Bank Bhd served as sole principal adviser and sustainability structuring adviser, as well as lead arranger and lead manager. Maybank Islamic Bhd was the sole subscriber and advised on Shariah matters.
Independent reviewer MARC Solutions Sdn Bhd gave the supporting social finance framework a “Gold” impact assessment. The framework follows the Securities Commission Sustainable and Responsible Investment Sukuk Framework, the Asean Social Bond Standards and the International Capital Market Association’s Social Bond Principles.
