CIMB Bank to issue US$20m bond under US$5b debt scheme

KUALA LUMPUR (April 26): CIMB Group Holdings Bhd’s indirect 99.99%-owned subsidiary CIMB Bank Bhd will issue tomorrow a US$20 million (about RM82.1 million) bond under CIMB Bank’s proposed debt scheme of up to US$5 billion, CIMB Investment Bank Bhd said.

CIMB Investment Bank said the US$20 million medium term note (MTN) programme, which pays an annual interest rate of 1.6%, will mature on April 27, 2026.

CIMB Investment Bank did not say how CIMB Bank plans to use the proceeds from the US$20 bond issue.

CIMB Investment Bank said the US$20 million bond will be listed on “Bursa Malaysia Securities Bhd (under the exempt regime)”.

“Dealers [for the US$20 million bond are] Daiwa Capital Markets Singapore Ltd [and] CIMB Bank, Labuan offshore branch,” CIMB Investment Bank, which is facilitating the US$20 million bond scheme for CIMB Bank, said in a filing last Friday with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website.

Under Bursa’s exempt regime, CIMB Bank’s US$20 million bond would be listed but not quoted for trading on the local bourse.

CIMB Investment Bank said the unrated US$20 million bond is governed by English law.

Under CIMB Bank’s proposed debt scheme of up to US$5 billion, CIMB Investment Bank said issuer CIMB Bank can issue bonds in other currencies

“The issuer may increase this amount in accordance with the terms of the dealer agreement and subject to obtaining the approval of each of the SC (Securities Commission Malaysia) and/or BNM [where required],” CIMB Investment Bank said.

On Bursa today, CIMB Group Holdings Bhd’s share price had fallen five sen or 1.19% to RM4.14 at the time of writing, giving it a market capitalisation of about RM41.07 billion.

CIMB Group has 9.92 billion issued shares, according to its latest annual report.

Source: TheEdgeMarkets