Basel III Sales Build With Oldest Malaysia Bank: Islamic Finance

Malaysia’s oldest Shariah-compliant lender is tapping the sukuk market for the first time, joining a rush among the nation’s Islamic banks to sell Basel III bonds before interest rates rise further.

Bank Islam Malaysia Bhd., established in 1983, set up a 1 billion ringgit ($305 million) program under the stricter capital standards, according to an Oct. 10 exchange filing. This year’s issuance of the debt totals 3.1 billion ringgit from five other lenders complying with religious tenets. Yields on the securities have fallen as sukuk supply falls short of demand.