KUALA LUMPUR, June 5 (Reuters) - The Bank of Tokyo-Mitsubishi UFJ (BTMU) said on Thursday that it is seeking to raise as much as $500 million through a multi-currency Islamic bond programme in Malaysia, becoming the first Japanese bank to use sukuk for fund-raising.

BTMU, Japan's largest bank and part of the Mitsubishi UFJ Financial Group Inc 8306.T , will issue the bonds mainly in U.S. dollars and yen.

The programme will be Malaysia's first yen-denominated sukuk and one of the first Islamic bonds to be marketed by an issuer outside the Muslim world in recent years.

"Islamic finance is a segment where we see great growth potential and it has become one of the key pillars in the bank's overall growth strategy for this region," said BTMU in a statement.

An accommodative tax regime and strong demand for sukuk in Malaysia has attracted issuers from Singapore, Indonesia and the Middle East.

BTMU did not state the size of the dollar and yen tranches. Funds from the sukuk will go towards growing the bank's portfolio of sharia-compliant loans.

The sukuk wakalah bi al-istithmar will comprise the bank's assets and receivables from the sale of commodities. It will be issued through BTMU's local subsidiary.

CIMB Investment Bank Bhd and Mitsubishi UFJ Securities International Plc are advising the deal.

(Reporting by Al-Zaquan Amer Hamzah; Editing by Ryan Woo)

((alzaquan.amerhamzah@thomsonreuters.com)(+60323338039)(Reuters Messaging: alzaquan.amerhamzah.thomsonreuters.com@reuters.net))

Keywords: BANKOFTOKYOMITSUBISHI SUKUK/