HSBC's Islamic banking unit raises 137 million pounds in Malaysia sukuk sale - IFR

(Reuters) - The Malaysian Islamic banking arm of HSBC Holdings has raised 750 million ringgit (137 million pounds) from the sale of a 5-year Islamic bonds (sukuk) at a yield of 4.24 percent, IFR reported on Thursday. The sale is the third tranche of the lender's overall 3 billion ringgit sukuk programme, sold using an agency-based structure known as 'wakala'. The size of the deal is larger than an initial target of 500 million ringgit stated in a term sheet seen by Reuters earlier. HSBC Amanah Malaysia Bhd pulled in strong demand, with the final book exceeding 1.38 billion ringgit at a bid-to-cover ratio of 1.84 times, according to IFR. HSBC Amanah didn't immediately respond to requests for comment. Final pricing came at the low end of guidance, which started at 4.22-4.28 percent. As orders poured in, the guidance was tightened to 4.22-4.25 percent within a few hours after books were opened, the Thomson Reuters publication added. The transaction is the latest issuance of sukuk by HSBC Amanah, with the bank last tapping the market in October with a five-year 500 million ringgit deal, with a similar debut deal in September 2012. HSBC Amanah hired HSBC as lead arranger with Hong Leong Islamic Bank and Maybank Investment Bank as joint lead managers for the sale, the term sheet said. (Reporting by Kit Yin Boey of IFR, Yantoultra Ngui, Bernardo Vizcaino and Archana Narayanan; Editing by Kenneth Maxwell)