French banking giant Societe Generale is reportedly planning to launch a US$300 million Islamic bond (sukuk) program in Malaysia.
Citing two sources familiar with the matter, Reuters reported that the bank is planning to issue the first tranche of the sukuk by the end of 2013.
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Societe Generale will be the second European bank to issue sukuk and the first in Asia.
One of the source told Reuters that Societe Generale will shortly seek approval for its issuance plans from Malaysia’s Securities Commission, having already secured nod to become a bond issuer from the central bank.
The source said the funds raised will be used to purchase assets in Dubai, where the bank’s Middle East private banking operations are headquartered.
Apart from Societe Generale, the other bank which issued the sukuk was the Middle East unit of HSBC Holdings that made a five-year, US$500 million issuance in 2011.
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