Bank of Tokyo-Mitsubishi UFJ Berhad has launched a $500 million sukuk in Malaysia--a first for Japanese commercial bank.

The Bank of Tokyo-Mitsubishi UFJ Berhad, the Malaysian subsidiary of Japan's largest bank Bank of Tokyo-Mitsubishi UFJ, has set up a $500 million multi-currency sukuk programme in a move that is a first by a Japanese commercial bank. 

BTMU Malaysia has obtained the mandate to raise funds in several currencies, including US dollars, Malaysian ringgit and Japanese yen over ten years. The timing is right, said the firm, as the global demand for sukuk instruments continues to grow. Sukuk is the Islamic finance counterpart of financial certificates or bonds. 

The funds raised through BTMU's sukuk programme will serve as funding sources for BTMU Malaysia's expansion plans in the Shariah compliant financing market. The sukuk programme was signed in 5 June 2014 and will have a tenor of ten years. CIMB Investment Bank, Mitsubishi UFJ Securities and Bank of Tokyo-Mitsubishi UFJ (Malaysia) are joint bookrunners and lead arrangers.