The Shariah-compliant investment management firm Japan Islamic Finance said it plans to sell about $1 million of yen-denominated Islamic bonds in a new structure that is based on cash flow generated from marketing Web sites, according to market reports. 

The deal will likely be privately placed.

Last September, Japan's central bank joined the Islamic Financial Services Board, an international standard-setting body.

The Japanese government has also been working to adapt its banking regulations to accommodate Islamic finance.

The Japanese Financial Services Agency (FSA) has introduced amendments to the banking law which should be in place by the end of 2008. These amendments, according to market reports, would make it easier for Islamic finance institutions to operate.

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