Public Islamic Bank raises $156 mln from first tranche of sukuk programme

KUALA LUMPUR, June 9 Mon Jun 9, 2014 8:23am EDT

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KUALA LUMPUR, June 9 (Reuters) - Public Islamic Bank , the sharia-compliant arm of Malaysia's third-largest lender, has raised 500 million Malaysian ringgit ($156.4 million) from the first tranche of a 5 billion ringgit sukuk programme.

The ten-year sukuk murabahah has an annual return of 4.75 percent, with proceeds going towards working capital and general corporate purposes, Public Bank said in a statement to the stock exchange on Monday.

The company said in late April it had established a Basel-III compliant sukuk programme, with funds to be treated as tier-2 regulatory capital. ($1 = 3.1965 Malaysian Ringgit) (Reporting By Al-Zaquan Amer Hamzah; Editing by Erica Billingham)