KUALA LUMPUR, June 12 (Reuters) - Societe Generale, France’s third-largest bank by assets, will raise up to 1 billion ringgit ($311.24 million) with a multi-currency sukuk programme in Malaysia, RAM Ratings said on Thursday.
Last year, people with knowledge of the matter had told Reuters that Societe Generale would issue $300 million worth of Islamic bonds in Malaysia by the end of 2013. Funds from the programme will go towards expanding the bank’s operations in the Middle East.
RAM Ratings gave the bond programme a AAA(s), or stable, rating, saying it reflected the bank’s strong presence across Europe and sound capital position.
The sukuk will be issued by the bank and a special-purpose vehicle set up as a funding conduit. No details on the sukuk tenure or structure were given.
The announcement comes a week after Bank of Tokyo-Mitsubishi UFJ, Japan’s largest lender, set up a $500 multi-currency sukuk programme in Malaysia. ($1 = 3.2130 Malaysian Ringgit) (Reporting By Al-Zaquan Amer Hamzah)