ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Capital Markets

BTMU provides $353m Islamic loan to Malaysian Saudi Telecom unit

Major Japanese lender looks to grow Islamic finance ops in the country

BTMU aims to expand operations in Malaysia through Islamic finance.   © Reuters

TOKYO -- The Bank of Tokyo-Mitsubishi UFJ has provided an Islamic syndicated loan to a Malaysian affiliate of Saudi Arabia's state-owned telecom company, Saudi Telecom. The ringgit-based loan amount is about 41.7 billion yen ($353 million).

Islamic finance bans the charging of interest, and it is customary to supply funds using palm oil transactions. BTMU is the first Japanese bank to act as an agent bank for a syndicated loan in Malaysia. The loan will be provided with HSBC and Standard Chartered Bank of the U.K.

Japanese banks in Malaysia mostly provide loans to Japanese companies operating in the country, lagging behind European and U.S. financial institutions in financing non-Japanese companies. BTMU aims to expand operations in the country through Islamic finance.

BTMU has extended foreign-currency Islamic loans in Malaysia since 2008, and ringgit-based Islamic loans since 2014.

The ratio of Islamic finance to total loans in Malaysia rose to about 30% at the end of 2017, from 17% at the end of 2009.

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media