DanaInfra bonds listing to boost ETBS growth

Business Times, 3 October 2012

KUALA LUMPUR: Bursa Malaysia Bhd expects the listing of DanaInfra Nasional Bhd's retail bonds by year end to bring about rapid growth of the new product and the overall exchange traded bonds and sukuks (ETBS).

Bursa Malaysia chief executive officer Datuk Tajuddin Atan said with the expenses of such issuances being given double deduction for a period of four years, ETBS are expected to grow rapidly and may attract foreign issuances out of Malaysia.

He said ETBS will add to the diversity of product offerings on Bursa Malaysia and enhance businesses' ability to obtain financial resources based on assets owned.

DanaInfra's RM300 million retail bonds will be the first ETBS to be listed on the local bourse and Tajuddin said it will be interesting to see the level of retail participation in the new offering.

DanaInfra's retail bonds are to raise financing for the MRT (mass rapid transit) development projects.

Its debut, said Tajuddin, "will spearhead the listing of ETBS, providing an additional and cost-effective method to raise capital as well as provide both domestic and foreign investors price transparency and flexible access to the stability of bonds and sukuk".

He said the introduction of ETBS complements Bursa Malaysia's goal of offering a diverse range of tradeable products on the Exchange.

"With the growth of ETBS, we anticipate an expansion of our traditional investor base to include those not currently in the market as well as regional retail investors via the recently announced Asean Trading Link connecting Bursa Malaysia and Singapore Exchange," he said.

Tajuddin added that the stamp duty exemption for the trading of retail bonds and sukuk will further stimulate trading of these instruments, creating greater liquidity.

He said last Friday's 2013 Budget announcement directly supported the country's plans to address the needs of capital market growth, vibrancy and resilience in the face of increasing competition while providing the most conducive environment for locally listed companies to grow competitively overseas.

Tajuddin was speaking to reporters here yesterday after launching OSK Investment Challenge (campus edition), which has entered into its third instalment.

OSK Investment chief executive officer U Chen Hock said since the first edition in 2010, the stimulated online trading competition has attracted an average of 30,000 participants annually from more than 200 public and private campuses.

"Through this competition, we aim to create a generation of financial and market-savvy Malaysians, a generation that can compete globally and drive the Malaysian economy towards becoming a high-income, inclusive and sustainable one," he said.

On the latest update of the merger with RHB Capital Bhd, U said it has been a smooth progress and that it is expected to be completed in the first quarter of next year.

(Web Source: http://www.btimes.com.my/articles/20121003003347/Article/#ixzz28gXFaWqA)