Corporate bonds

Malaysia records RM114.28 billion in corporate bond and sukuk issuance in 2021

KUALA LUMPUR: Total issuance of corporate and sukuk bonds in Malaysia increased by 9.28% to RM114.28 billion in 2021 from RM104.58 billion issued in 2020, the Securities said Commission Malaysia (SC).

In its 2021 annual report released today, the SC said it had received 72 Lodge and Launch Framework filings and approved four corporate bond and sukuk issuance applications, compared to 64 filings previously.

He said that ringgit-denominated corporate bonds and sukuk issues continued to make up the majority of proposals approved by/filed with CS with a total face value of RM162.83 billion, of which 88.58% or RM144.23 billion was sukuk.

“The total number of ringgit-denominated corporate bonds and sukuk approved by/filed with the SC with terms of one to seven years and more than 15 years increased by 110% and 9.76% respectively.

“There was an 11.11% decrease in the total number of ringgit-denominated corporate and sukuk bonds with terms ranging from eight to 15 years,” he said.

The SC said a total of 63 ratings were assigned by credit rating agencies to ringgit-denominated corporate bonds and sukuk issues filed with the regulator last year.

Regarding takeovers and mergers, the SC said it reviewed 79 requests in 2021 under the mandatory buyout, merger and acquisition rules regulation, compared to 80 requests in 2020.

“A total of 18 offer documents were approved in 2021, implying a total offer value of RM8.59 billion or an average of RM477.17 million per offer, representing an increase of 5, RM1 billion over the previous year,” he said. .

In 2020, the SC authorized a total of 25 tender documents with a total tender value of RM3.49 billion or an average of RM139.57 million per tender.

The SC declared in 2021 the scheme in relation to MMC Corporation Bhd was the largest bid at RM2.94 billion in bid value, accounting for 34% of the total bid value for the year.

Other notable offerings in terms of offering values ​​include FGV Holdings Bhd. and IJM Plantations Bhd.both listed in the plantation sector of Bursa Malaysia Securities Bhd with respective offer values ​​of RM2.35 billion and RM1.2 billion.

Meanwhile, the SC said there were 23 fairness requests to review in 2021, of which 13 were considered, three were withdrawn while the remaining seven would be considered in 2022.

He said that out of the 13 equity applications reviewed, eight were for initial public offering (IPO) in Bursa Malaysia’s main market with a total market capitalization of RM9.14 billion.

He added that the estimated amount of funds raised from these IPOs was RM3.51 billion. – Bernama