Banking, Finance & Takaful

BIMB to sell RM1.7 billion sukuk to clinch Bank Islam purchase

bank-islamMalaysia’s BIMB Holdings Bhd will issue a RM1.7 billion ringgit Islamic bond to help raise the US$884 million (RM2.835 billion)  it needs to buy the remainder of Bank Islam, the country’s oldest and largest standalone Islamic bank.

The 10-year sukuk will be sold to Tabung Haji, BIMB’s biggest stakeholder, in a private placement, a filing to the central bank on Monday showed. The bond is made available for the six months to May 27, 2014.

BIMB’s plans were initially rejected by the central bank due to a proposal to secure the sukuk with shares of the company .

BIMB in August announced plans to acquire the 49% stake it does not own in Bank Islam held by Dubai Group and Tabung Haji.

Source: Reuters

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