KUALA LUMPUR, Sept 2 — Malaysia’s central bank has rejected plans by BIMB Holdings Bhd to issue an Islamic bond and raise US$884 million (RM2.89 billion) it needs to gain full control of Bank Islam, the country’s oldest and largest standalone Islamic bank.
BIMB last month proposed a 10-year Islamic bond or sukuk of RM1.5 billion as part of a plan to acquire the 49 per cent stake it does not own in Bank Islam held by Dubai Group and Tabung Haji.
Malaysia’s central bank has rejected BIMB’s proposal to secure the sukuk with shares of the company, which will need to identify an alternative asset for the exercise, BIMB said in an announcement to the stock exchange today.
“We shall convene a special board meeting and further announcements will be made in due course,” BIMB’s chief executive officer Johan Abdullah told Reuters. — Reuters
