Toyota paves way for return to Malaysia's sukuk market
The Malaysia unit of Japan's biggest automaker Toyota Motor Corp plans to setup a 2.5 billion ringgit (S$897 million) programme to raise funds via both conventional and Islamic bonds, a regulatory filing showed.
The proposed programme from Toyota Capital Malaysia Sdn Bhd was rated AAA by RAM Ratings, and follows a 1 billion ringgit sukuk programme setup in 2008 that matured earlier this month.
The Malaysia unit has two other conventional debt programmes that can raise a combined 1.8 billion ringgit; It sold a debut sukuk in 2008.
The move comes at a time when Japanese firms are renewing efforts in the sector, with Japan's financial regulator relaxing rules for domestic banks to use Islamic financial products.
Over the past year, Bank of Tokyo-Mitsubishi UFJ, Japan's largest lender, and Sumitomo Mitsui Banking Corp have expanded their Islamic finance activities overseas.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Porsche posts Q1 profit drop on ramp-up costs
Air China orders homegrown C919s in challenge to jet duopoly
Huawei’s smart car tech offers automakers route to China sales
Sri Lanka to hand management of China-built airport to India, Russia companies
Tesla’s plan for affordable cars takes page from Detroit rivals
Toyota is investing US$1.4 billion to build another all-electric SUV in US