Mitsubishi-Tokyo UFJ Signs Islamic Banking Deal with ICD

Kuala Lumpur, Sept. 8 (Jiji Press)--A Malaysian unit of Bank of Tokyo-Mitsubishi UFJ on Monday signed an Islamic banking deal with Islamic Corp. for the Development of the Private Sector, or ICD. Naoki Nishida, president of Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd., and ICD Chief Executive Officer Khaled Al-Aboodi signed the deal at a Kuala Lumpur hotel. The deal involves the use of Murabaha, a form of credit sale acceptable under Islamic religious law. Specifically, the Malaysian unit of the major Japanese bank will buy 100 million dollars' worth of palm oil for ICD through the Murabaha product platform of Bursa Malaysia, a major exchange in the Malaysian capital, and resell it to the company at a price of 100 million dollars plus relevant costs.