ID :
162636
Mon, 02/21/2011 - 07:53
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Shortlink :
https://oananews.org//node/162636
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M'SIA REMAINS TOP DESTINATION FOR INT'L BOND ISSUANCE
KUALA LUMPUR, Feb 21 (Bernama) -- Malaysia remains an attractive destination for international bond issuances, with the Gulf Investment Corporation (GIC) being the latest foreign entity to raise RM600 million (US$197 million) through a successful five-year fixed rate bond issue in Malaysia.
The bond issuance programme was rated "AAA" by the Rating Agency Malaysia (RAM), said GIC jointly owned by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
"The sustained improvement in profitability and financial strength over the past two years reaffirms the corporation's success in overcoming challenging operating environments, and is a reflection of its inherent resilience," said GIC chief executive officer Hisham A Al Razzuqi in a statement Monday.
He said the five-year bond issue would further help diversify GIC's funding sources.
"Liability management is a vital component of GIC's business strategy and prudent targets are set across the term structure, with the objective of optimising the risk return profile of our funding," he said.
Despite tensions and political unrest in the Middle East, local investors in the Islamic bond market still showed signs of strong appetite for bonds as indicated by the warm reception received by the GIC for its recent bond issue.
The Royal Bank of Scotland Berhad was the lead manager for the issue, strongly supported by Maybank Investment Bank Bhd, said GIC, which has long and strong ties with Malaysian investors.
The bond issue followed a RM1 billion issue in 2008, its naugural fixed rate bond issuance in Malaysia over-subscribed by 2.76 times.
The GIC is a leading regional financial institution established under the auspices of the Gulf Cooperation Council and equally owned by the six gulf states.
The bond issuance programme was rated "AAA" by the Rating Agency Malaysia (RAM), said GIC jointly owned by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
"The sustained improvement in profitability and financial strength over the past two years reaffirms the corporation's success in overcoming challenging operating environments, and is a reflection of its inherent resilience," said GIC chief executive officer Hisham A Al Razzuqi in a statement Monday.
He said the five-year bond issue would further help diversify GIC's funding sources.
"Liability management is a vital component of GIC's business strategy and prudent targets are set across the term structure, with the objective of optimising the risk return profile of our funding," he said.
Despite tensions and political unrest in the Middle East, local investors in the Islamic bond market still showed signs of strong appetite for bonds as indicated by the warm reception received by the GIC for its recent bond issue.
The Royal Bank of Scotland Berhad was the lead manager for the issue, strongly supported by Maybank Investment Bank Bhd, said GIC, which has long and strong ties with Malaysian investors.
The bond issue followed a RM1 billion issue in 2008, its naugural fixed rate bond issuance in Malaysia over-subscribed by 2.76 times.
The GIC is a leading regional financial institution established under the auspices of the Gulf Cooperation Council and equally owned by the six gulf states.
