National Bank of Abu Dhabi , the UAE's largest lender by market value, has issued a 500 million Malaysian ringgit ($163 million) Islamic bond or sukuk, its third in the south Asian currency.

The 15-year sukuk was issued at a coupon of 4.75 percent and is the first ever issue of subordinated debt by a non-Malaysian financial institution in Malaysia, the bank said on Friday.

NBAD, which recently opened a wholly-owned subsidiary in the Malaysian capital, issued its first, five-year 500 million Malaysian ringgit sukuk in June 2010. It issued the second ten-year 500 million ringgit sukuk in December 2010.

"This new issue ... reflects the commitment of NBAD to create a yield curve in Malaysian ringgit to meet the strong investor demand for our credit and fits in very well with our core strategy of diversifying the bank's funding sources and extending our maturity profile," Stephen Jordan, NBAD's Group Treasurer said in a statement.

HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad, Standard Chartered Saadiq Berhad, and National Bank of Abu Dhabi Malaysia Berhad were the joint lead managers of the transaction.

Last month, RAM Ratings, the Malaysian credit-rating agency reaffirmed National Bank of Abu Dhabi PJSC's (NBAD) long and short-term financial institution ratings, at AAA and P1 respectively.

NBAD said last month it was eyeing the Korean market as it seeks to expand its presence in Asia. It opened a representative office this year in Shanghai, China, as well as launching the wholly-owned subsidiary in Malaysia. The bank also has a presence in Hong Kong. – Reuters