MUFG prepares to offer Islamic bonds in Japan

TOKYO -- Mitsubishi UFJ Financial Group will become the first Japanese bank to market Islamic bonds domestically, starting as soon as March in partnership with Morgan Stanley.

MUFG Bank's Malaysia subsidiary received authorization from that country's central bank to advise on new issuances of the bonds, known as sukuk. The unit consulted with legal experts, accountants and local authorities to determine how payouts would be treated in Japan for tax purposes, crafting a framework that makes the bonds accessible to investors.