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.