HSBC's Islamic banking unit plans sukuk sale in Malaysia

[KUALA LUMPUR] The Malaysian Islamic banking arm of HSBC Holdings will tap the Islamic bonds (sukuk) market for only the third time on Friday, as part of a 3 billion ringgit (S$1.1 billion) sukuk programme, the lender said in a regulatory filing.

No size or tenor for the deal was given, but a separate term sheet seen by Reuters said the bank planned to raise up to 500 million ringgit worth of sukuk using an agency-based structure known as 'wakala'.

The transaction would be the latest issuance of sukuk by HSBC Amanah Malaysia Berhad, with the bank last tapping the market in October with a five-year 500 million ringgit deal, with a similar debut deal in September 2012.

HSBC Amanah has appointed HSBC as lead arranger with Hong Leong Islamic Bank and Maybank Investment Bank as joint lead managers for the sale, the term sheet said.

REUTERS