SINGAPORE, Feb 13 (Reuters) - 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 few years.
“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)