Malaysian sharia lender Bank Islam plans to raise up to 540 million ringgit ($149.5 million) by selling preference shares to existing shareholders, a Malaysian newspaper reported on Saturday.

Bank Islam has sent out letters of invitation to its major shareholders including Kuala Lumpur-listed BIMB Holdings and Dubai Islamic Investment Group to participate in the cash call, Bank Islam managing director Zukri Samat was quoted as saying.

Zukri said the fundraising plan has been approved by Bank Islam's board, which consists of four representatives from Dubai Islamic.

Dubai Islamic has a 40 per cent stake in Bank Islam while Tabung Haji, the Malaysian pilgrims fund, owns the remaining 9 percent.

BIMB, which owns 51 percent of Bank Islam, will give its full support to Bank Islam's fundraising exercise, said BIMB Group managing director Johan Abdullah.

"Bank Islam is our subsidiary and we want to strengthen its balance sheet," Johan was quoted by the newspaper as saying.-Reuters