Malaysia's central bank has rejected plans by BIMB Holdings to issue an Islamic bond and raise $884 million it needs to gain full control of Bank Islam, the country's oldest and largest standalone Islamic bank.

BIMB last month proposed a 10-year sukuk of 1.5 billion ringgit ($456.66 million) as part of a plan to acquire the 49 per cent stake it does not own in Bank Islam held by Dubai Group and Tabung Haji.

Malaysia's central bank has rejected BIMB's proposal to secure the sukuk with shares of the company.-Reuters