KUALA LUMPUR (REUTERS) - Malaysia Airports Holdings (MAHB) has sold RM500 million (S$194 million) worth of Islamic bonds, or sukuk, to raise funds for a RM4 billion terminal for budget airlines.

MAHB previously told Reuters that the company plans to raise RM1 billion in sukuk, as costs for the terminal had risen to RM4 billion from RM3.1 billion after numerous delays. The sukuk, which was oversubscribed by 3.4 times, was taken up by a group comprising government agencies, corporate buyers and financial institutions, MAHB said in a statement on Friday.

CIMB Investment Bank, Citibank, HSBC Amanah Malaysia, and Maybank Investment Bank are advising MAHB on the sukuk.

Kuala Lumpur International Airport 2, set to be the world's largest terminal for budget airlines, plans to serve 45 million passengers each year to meet the growing number of visitors using Malaysia as an entry point to South-east Asia.