DANAVEST

TOKYO: Toyota Motor Corp plans to sell Islamic bonds in Malaysia, setting up a shelf registration of RM1 billion (US$311 million), the Nikkei business daily reported today.

The world’s biggest automaker is expected to start selling such bonds through its financial arm as soon as this month, the Nikkei said. Toyota will use the proceeds to make auto leases and loans in Malaysia.

Through the shelf registration, Toyota will be able to issue commercial paper and corporate bonds with maturities of up to seven years. Bank of Tokyo-Mitsubishi UFJ and Malaysia’s CIMB Bank are expected to lead manage deals, the paper said.

Aeon Credit Service Co Ltd, a consumer credit company affiliated with retail group Aeon Co Ltd, has already sold Islamic bonds and Toyota’s planned issuance should help the Japanese Islamic bond market to grow, the Nikkei said. - Reuters

Via Business Times