KUALA LUMPUR: Malaysia's BIMB Holdings Bhd will issue a 1.7 billion ringgit or $525.75 million Islamic bond next year to help raise the $884 million 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 in May 2014 to Tabung Haji, BIMB's biggest stakeholder, in a private placement, a filing to the central bank on Monday showed.
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 percent stake it does not own in Bank Islam held by Dubai Group and Tabung Haji. (Reuters)