The Bank of Tokyo-Mitsubishi UFJ (BTMU) today said that it is seeking to raise as much as US$500 million (RM1.6 billion) through a multi-currency Islamic bond program in Malaysia, becoming the first Japanese bank to use sukuk for fund-raising. BTMU, Japan's bank and part of the Mitsubishi UFJ Financial Group, will
The Bank of Tokyo-Mitsubishi UFJ (BTMU) today said that it is seeking to raise as much as US$500 million (RM1.6 billion) through a multi-currency Islamic bond program in Malaysia, becoming the first Japanese bank to use sukuk for fund-raising.
BTMU, Japan's bank and part of the Mitsubishi UFJ Financial Group, will issue the bonds mainly in US dollars and yen.
The program will be Malaysia's first yen-denominated sukuk and one of the first Islamic bonds to be marketed by an issuer outside the Muslim world in recent years.
An accommodative tax regime and strong demand for sukuk in Malaysia has attracted issuers from Singapore, Indonesia and the Middle East.
BTMU did not state the size of the dollar and yen tranches. Funds from the sukuk will go towards growing the bank's portfolio of sharia-compliant loans.
The sukuk wakalah bi al-istithmar will comprise the bank's assets and receivables from the sale of commodities. It will be issued through BTMU's local subsidiary.