MUFG sees a bright future for Islamic financing

The Japanese megabank has closed its first Sharia-compliant financing with a $35 million facility for a large solar project in Malaysia. And it sees more opportunities ahead.

MUFG’s Malaysian subsidiary closed a M$144 million $35 million Shariah-compliant project financing facility for Tenaga Nasional Berhad’s TNB new large-scale solar LSS plant on January 10.

This marks the first time a Japanese bank has provided project financing via a Shariah-compliant, Malaysian ringgit-denominated instrument, according to a MUFG press release.

“We are honoured to be given the opportunity by TNB to play a role in developing Malaysia’s second largest solar plant,” said Takuma Matsuyama, chief executive officer of MUFG Bank Malaysia. 

The facility will include Ijarah, commodity Murabahah financing and the Islamic bank guarantee, with a tenure of 20 years, MUFG told...

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