Malaysia’s MBSB Bank has set up a sukuk programme of up to 10 billion ringgit ($2.4 billion) in nominal value.

The programme will use the contract wakalah bi al-istithmar for senior sukuk wakalah and/or Tier 2 sukuk wakalah and/or Additional Tier 1 capital sukuk wakalah, the standalone Islamic bank said in a bourse filing on Wednesday (Nov 20).

MBSB said the proceeds from the sukuk issuances will be used for its Shariah-compliant general banking purposes and to refinance outstanding capital instruments.

Malaysia Building Society Berhad acquired Asian Finance Bank and re-branded it to become MBSB Bank in 2018. MBSB obtained its Islamic banking licence in April 2018.