BTMU Malaysia To Set Up Multi-Currency Sukuk Program

The Bank of Tokyo-BTMU Malaysia to set up Multi-Currency Sukuk Programme.  Mitsubishi UFJ, Ltd. (BTMU) (President: Nobuyuki Hirano) is pleased to announce that its subsidiary, Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad (BTMU Malaysia), has set up a USD500 million (or equivalent) multi-currency Sukuk program. This is the first by a Japanese commercial bank.

Through this program, BTMU Malaysia has obtained the mandate to raise funds in multi-currencies including US Dollars, Malaysian Ringgit, and Japanese Yen over 10 years. BTMU Malaysia envisages issuing its first tranche of the Sukuk at an appropriate time in anticipation of strong global demand for Sukuk instruments. The funds raised through this Sukuk program will serve as funding sources for BTMU Malaysia to keep pace with the increasing demand and its growing exposure to multi-currencies Shariah-compliant financing.

Details of the BTMU Malaysia Sukuk Program

Program Amount: USD500 million (or equivalent) Signing Date: June 5, 2014 Program Tenor: 10 years Program Rating: AAA (bg) / Stable, on the Malaysian national scale from RAM Rating Services Berhad Guarantor: The Bank of Tokyo-Mitsubishi UFJ, Ltd.Joint Bookrunners, Joint Lead: CIMB Investment Bank Berhad, Mitsubishi UFJ Securities Arrangers, and Joint Lead Managers International Plc, Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad

BTMU Malaysia’s Islamic banking business has progressed steadily over the past few years and it has taken on a proactive role in providing Islamic financial services through its International Currency Business Unit since it obtained a license from the central bank of Malaysia in 2008. BTMU Malaysia is the only Japanese bank to have its own in-house Shariah Committee which is formed by a team of Shariah scholars who provide Shariah compliance supervision and advisory on Islamic financial transactions.

This Sukuk program further underpins BTMU and BTMU Malaysia’s commitment to contributing to the development of Islamic finance and providing stronger support to customers’ demands for Islamic financial services not only in Malaysia but also in other Asian and Middle East countries.