ASEAN KEY DESTINATIONS
Thailand to issue first Islamic bonds
State-owned Islamic Bank of Thailand will issue the country's first Islamic bond in a plan to raise funds for expansion, its president was quoted by Reuters as saying Friday.
The bank will sell 200 million ringgit ($55.42 million) of mudaraba bonds in neighbouring Malaysia, Dheerasak Suwannayos said.
"It is just to test the market," Dheerasak told Reuters by telephone. "Thailand has never issued anything in Islamic bonds before. I think we will start to work on it after April."
The bank has appointed Zaid Ibrahim, a Malaysian law firm, as its legal adviser for the deal but has yet to select a bank, Dheerasak said.
He said Islamic Bank of Thailand may pick Malaysia's second largest lender CIMB Bank, the world's top arranger of Islamic bonds, to handle the deal.
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