In relation to the proposed first issuance of Hong Leong Islamic Bank Berhad's Islamic commercial papers under its Senior ICP Programme via competitive tender(s), there may be a potential conflict of interest from Hong Leong Islamic Bank Berhad participating as a tender panel member in view that Hong Leong Islamic Bank Berhad is the Issuer.

Notwithstanding the above, Hong Leong Islamic Bank Berhad as the tender panel member has considered the factors involved and believes the objectivity and independence in carrying out its role has been and/or will be maintained at all times for the following reasons:

(a)        the conduct of Hong Leong Islamic Bank Berhad is regulated by Bank Negara Malaysia under the Islamic Financial Services Act 2013; and

(b)        Hong Leong Islamic Bank Berhad as the tender panel member is solely submitting bids on behalf of other interested investors based on the order(s) received from the interested investors and it is the sole tender panel member for the proposed first issuance of the Islamic commercial papers,

and in order to further mitigate and address such potential conflict of interest, the following measures have been taken:

(i)         the board of directors of the Issuer has authorised its Chief Executive Officer to approve any conflict of interest arises throughout the Senior ICP Programme and to agree to proceed with the Senior ICP Programme taking into account the relevant factors and reasons;

(ii)        the potential conflict of interest situation has been brought to the attention of the Chief Executive Officer of the Issuer and hence the Chief Executive Officer of the Issuer is fully aware of the same. The Chief Executive Officer of the Issuer has acknowledged and confirmed that having considered the above situation, the Chief Executive Officer of the Issuer is agreeable to proceed with the proposed first issuance of the Islamic commercial papers; and

(iii)       the potential conflict of interest is he