Malaysian banks are targeting Islamic bond sales from the top three palm-oil producers, which have almost triple the amount of debt due in the three years through 2014 than in the last three and need funds for replanting.

Hong Leong Islamic Bank Bhd, Maybank Investment Bank Bhd and Affin Investment Bank Bhd are chasing an expected surge in underwriting deals, senior executives at the lenders said in separate interviews last week.

Sime Darby Bhd, Kuala Lumpur Kepong Bhd and IOI Corp Bhd have $1.5 billion of debt due by the end of 2014, compared with $585 million in the three years through 2011, according to data compiled by Bloomberg.

Producers will need extra funds for replanting over the next three years as estates mature, Vicky Melbourne, a credit analyst at Fitch Ratings in Sydney, said in an Oct. 5 interview.

Malaysia extended a tax break for agricultural companies selling sukuk through 2015 last month. Palm oil prices, which touched a three-year low last week, will rebound and be buoyed by rising population and income levels, said Syamsul Azuan Ahmad Fauzi, head of Islamic institutions and corporates at Hong Leong.

"What makes it attractive as a target financing sector is its role in the global food chain, as the longer-term outlook is well supported," he said in an Oct. 1 interview from Kuala Lumpur. "There is a lot of liquidity seeking Islamic assets."