Malaysia launches first exchange traded bonds, Sukuk

KUALA LUMPUR: Malaysia launched its first exchange traded bonds and Sukuk (ETBS) on Tuesday which will be the first infrastructure bond issuance to be opened to the public.

Prime Minister Datuk Seri Najib Tun Razak, who launched the ETBS issuance, said the retail offering would enable the citizens to have a stake in the country's success.

DanaInfra Nasional Bhd is allocating RM300mil under this issuance, the initial tranche of the RM1.5bil for funding the first phase of the MRT Kajang to Sungai Buloh line.

"Today the first tranche is open to retail investors under the new scheme will be issued. And I am pleased to say the funds raised will support the KL MRT project," Najib said in his speech.

DanaInfra is tasked with facilitating the funding of large infrastructure projects by the government. The facilitation of this ETBS for the MRT is its first.

In his speech, Najib said the main objective of the MRT was to ease the burden of the rakyat.

This could be achieved through increasing the number of people using public transport, alleviating traffic congestion and reducing travel time from one place to another.

"The project is expected to generate a further RM8bil to RM12bil GNI from spill-over effects. In total, an average of RM21bil GNI per annum will be generated over the next 10 years, creating 130,000 jobs, as well as pushing up the value of property in the vicinity of MRT stations.

"Further, it will spur new property developments, boosting commerce and reduce carbon emissions," said Najib.

(Web Source: http://biz.thestar.com.my/news/story.asp?file=/2013/1/8/business/20130108111736&sec=business)