DanaInfra to launch first retail issue of bonds

The Sun Daily, 28 September 2012

PETALING JAYA (Sept 28, 2012): DanaInfra Nasional Bhd will become the first issuer of retail bonds this year, under the government's initiative to encourage retail investors to participate in the local bond and sukuk markets.

DanaInfra, a wholly-owned subsidiary of the Ministry of Finance Inc, will issue retail bonds worth RM300 million by end-2012 to finance mass rapid transit development projects, said Prime Minister Datuk Seri Najib Abdul Razak in the Budget 2013 speech tabled at Parliament today.

The Securities Commission had recently formulated and launched a framework for retail bond and sukuk issuances to enable investors to acquire stakes in the bond and sukuk markets.

"To encourage companies to issue retail bonds and retail sukuk, the government proposes that additional expenses incurred in the issuance of retail bonds and retail sukuk be given a double deduction for a period of four years effective from year of assessment 2012 to 2015.

"At the same time, individual investors are also given stamp duty exemption on instruments relating to the transactions of retail bonds and retail sukuk," said Najib.

(Web Source: http://www.thesundaily.my/news/502356)