Malaysia's Malakoff gets nod to issue $575mn Islamic bonds

KUALA LUMPUR: The power arm of Malaysian builder MMC Corp Bhd has obtained regulatory approval to issue up to 1.8 billion ringgit ($575.2 million) worth of Islamic bonds to repay debt, MMC said on Friday.

The fund-raising by unit Malakoff Corp Bhd comes in the form of 30-year Islamic bonds, junior sukuk musharakah, which will be used for working capital as well as to redeem its outstanding debt, MMC said.

MMC, which owns 51 percent of Malakoff, plans an initial public offering of shares in the unit on the local bourse next year, which could fetch up to $1 billion.