Malaysia’s Exim Bank is set to tap the global sukuk market, as Shariah-compliant assets expand to reach 40% of the bank’s total next year.
The planned sukuk is the lender’s third in the international debt market, reports Bloomberg Businessweek.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The bank is expanding its Islamic finance operation as part of Prime Minister Najib Razak’s initiative to make the nation a global Shariah-compliant hub by 2020, said Adissadikin, CEO of Exim bank.
Adissadikin Ali said that Exim intends to sell dollar-denominated Islamic bonds in the second half of 2015, and also hinted at annual growth plans of 30%.
The lender is expected to offer $200m to $300m of dollar sukuk with a maturity of five years or more in the second half of next year, added Adissadikin.
The lender’s religious tenet compliant assets reportedly increased to MYR 2.4bn ($718m) in 2014 from MYR 1.5bn in the previous year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe bank reached its full-year target of MYR 5bn for Islamic and conventional loans at the end of October, which is projected to escalate to MYR 6bn in 2014.
