SINGAPORE Feb 13 AMMB Holdings
, Malaysia's fifth largest lender, said its
sharia-compliant unit would issue up to 3 billion ringgit ($903
million) of Islamic bonds, the first sukuk from East Asia
structured to meet the capital requirements of Basel III.
AmIslamic's sukuk will fund working capital and boost Tier 2
capital reserves at the bank, AMMB said in a statement.
Banks around the world will face larger capital requirements
under Basel III standards that will be phased in over the next
"With Basel III regulation on capital components coming into
effect early last year, we expect more issuances of Basel
III-compliant sukuk in the Malaysian debt capital market," Kuala
Lumpur-based RAM Ratings said.
($1 = 3.3235 Malaysian ringgit)
(Reporting By Al-Zaquan Amer Hamzah; Editing By Andrew Torchia)