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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.

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