DUBAI: State-owned Islamic Bank of Thailand plans to increase its capital by 7.11bn baht ($234.9m) and issue a 5bn baht sukuk, the country’s first-ever Islamic bond, the bank said yesterday.
The bank said it hoped this strategy would help it to return to profit this year and help the country’s Islamic financial sector grow after tax legislation necessary for its expansion was passed in May 2011.
Under the plan, the bank said it would raise 927m baht in capital this month and 6.2bn baht in the fourth quarter.
The bank said it would issue the 5bn-baht subordinated sukuk to increase its capital ratio.
Last year, bank officials said the sukuk would have a likely maturity of five years and the bank would appoint Malaysia’s CIMB Bank to handle the deal, targeting domestic and institutional investors in Malaysia and Hong Kong.
Reuters
