« Back To Business Top

print

Toyota Financial to issue Islamic bond in Malaysia

Wednesday 14th May, 05:20 AM JST

TOKYO —

Toyota Financial Services Corp plans to issue a “sukuk,” an Islamic security similar to a bond, totaling up to one billion ringgits in Malaysia as early as this month, company officials said Tuesday.

The financial unit of Toyota Motor Corp intends to boost operations in Asia amid strong automobile demand. The proceeds will be used for Islamic-style auto loan and leasing services.

Because Islam forbids interest-bearing bonds, investors in the security will receive benefits such as in goods purchases.

Toyota Financial will become the second Japanese company to issue sukuk securities after Aeon Credit Service Co.

Toyota Financial’s Islamic securities program will be effective for seven years. The company can issue commercial paper with maturities of up to 12 months and medium-term notes with maturities of up to seven years.

JCN

0 Comments

Register or login to add a comment!