UPDATE 1-Turkiye Finans to raise up to 3 bln rgt with sukuk in Malaysia

Thu Jun 26, 2014 8:42am EDT

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(Adds details on first issuance from the programme)

KUALA LUMPUR, June 26 (Reuters) - Turkish lender Turkiye Finans Katilim Bankasi plans to sell 3 billion ringgit ($933 million) of Islamic bonds in Malaysia, according to a filing with the southeast Asian country's central bank on Thursday.

The bank will initially raise 800 million ringgit with a five-year sukuk on June 30, according to a separate filing by Standard Chartered Saadiq to the central bank. It will have an annual return of six percent.

Sukuk under the programme will have a tenure of one to 20 years. Funds raised will go towards general corporate purposes.

The so-called sukuk murabaha will be issued through TF Varlik Kiralama, a wholly-owned unit of Turkiye Finans. Malaysia's RAM Ratings has accorded the programme an indicative long-term rating of AA3.

HSBC Amanah Malaysia and Standard Chartered Saadiq are joint advisers.

($1 = 3.2170 Malaysian Ringgit) (Reporting by Al-Zaquan Amer Hamzah; Editing by Kim Coghill and Mark Potter)

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