KUALA LUMPUR Aug 6 A unit of Malaysia's MMC Corp will issue 4.5 billion ringgit ($1.44 billion) of Islamic bonds after winning approvals from the securities commission, the firm said in a stock exchange filing on Monday.
Tanjung Bin Power Sdn Bhd -- a coal-fired power station 90 percent owned by Malakoff Corp that is in turn controlled by MMC Corp -- will be using the proceeds from the sukuk, or Islamic bonds, for working capital and to pay off debts, MMC Corp said.
The sukuk programme, with an ijarah structure, runs for 17 years from the first issue date.
The first tranche of sukuk ijarah will be made within two years from the date of approval by the securities commission approval that was given on August 6, MMC Corp said. ($1 = 3.1260 ringgit) (Reporting by Niluksi Koswanage)