Abu Dhabi National Energy Co (Taqa) plans to tap the Malaysian sukuk market with a 3.5 billion ringgit ($1.1 billion) Islamic bond, or sukuk, programme, the company said in a bourse statement on Sunday.

The bond programme is pending regulatory approval. The statement did not provide any further details.

'Once appropriate regulatory approval is received, the program will allow Taqa to issue quickly if and when market conditions are optimal.'     

A senior Taqa executive told Reuters in March the company was unlikely to issue a bond this year but could tap debt markets in 2012 ahead of a $1.5 billion maturity.

Gulf borrowers are tempted to explore financing options in Malaysia to diversify funding sources away from dollar financing and to tap into an Islamic investor base.

In August, Kuwait's Gulf Investment Corporation (GIC) issued 750 million ringgit ($253.5 million) of five-year sukuk at 4.90 percent

National Bank of Abu Dhabi and Abu Dhabi Commercial Bank have both issued in ringgit, in response to high demand from Malaysian investors looking to gain international exposure in local currency.

Taqa is owned 75-percent by the Abu Dhabi government and invests in the energy sector globally. Its second-quarter net profit  more than doubled helped by high oil prices and increased production in the UK. - Reuters