"This landmark programme is indeed significant as it is the largest debt programme ever arranged by a financial institution, and is the largest programme ever established by any issuer in the (private debt securities) market," it said.

Bank Pembagunan Malaysia said the securities would take the form of conventional or Islamic medium term notes, which would allow it greater flexibility.

The transaction allows the bank "to meet the funding requirements of both its Islamic and conventional banking activities, as and when the need arises," it said in a statement.

Proceeds from the sale of the securities over 30 years, starting in 2006, will fund the bank and its subsidiaries' lending activities and capital requirements.