Malaysia's UMW plans 800 mln rgt Islamic paper deal

KUALA LUMPUR, June 23 (Reuters) - Malaysian auto-to-energy group UMW Holdings Bhd (UMWS.KL) has set up a programme to sell up to 800 million ringgit ($226.1 million) of Islamic paper to refinance its borrowings and for working capital.

The paper will be issued under the musharaka concept, UMW said in a statement.

Under the musharaka principle, parties contribute capital to a venture with profits to be shared according to an agreed ratio, while losses are generally divided as per the capital contribution ratio.

Maybank Investment Bank Bhd, the investment banking arm of Maybank (MBBM.KL) is the deal's lead arranger, UMW said. ($1=3.538 Malaysian Ringgit)

(Click on [ID:nISLAMIC] for more Islamic finance stories and ISLAMIC for a speed guide) (Reporting by Liau Y-Sing)