CIMB's first collateralised sukuk will widen Islamic asset pool

Kuala Lumpur

CIMB Group Holdings Bhd plans to sell a sukuk backed by a pool of loans, becoming the world's first Islamic bank to sell the type of collateralised debt that contributed to the global financial crisis.

The Malaysian lender is seeking to raise RM1 billion (S$374 million) from an offering of five-year notes this quarter, CIMB Islamic Bank Bhd's chief executive officer Badlisyah Abdul Ghani said in an April 3 interview in Kuala Lumpur. State-owned mortgage company Cagamas Bhd, the nation's biggest corporate bond issuer, already sells such securities in their Islamic and conventional forms.