February 27, 2012, 10:33 PM EST
By Chong Pooi Koon
(Updates with analyst’s reaction in seventh paragraph.)
Feb. 28 (Bloomberg) — CIMB Group Holdings Bhd., Malaysia’s second-biggest bank, said fourth-quarter profit surged 30 percent to a record on increased lending as it seeks to grow its Asia-Pacific reach.
The Kuala Lumpur-based bank is in talks to buy part of the Royal Bank of Scotland Plc’s investment banking and securities business in the region, CIMB Chief Executive Officer Nazir Razak told reporters in Kuala Lumpur yesterday. It’s simultaneously in negotiations to acquire a stake in Manila-based Bank of Commerce, he said, declining to give details on both deals.
Net income climbed to 1.13 billion ringgit ($374 million), or 15.2 sen per share, in the three months ended Dec. 31 from 872.6 million ringgit, or 11.8 sen per share, a year earlier, the company said in an exchange filing. It declared a higher dividend of 10 sen per share, compared with 8 sen previously.
“I think 2012 could surprise on the upside as most of the downside risks are already quite visible,” Nazir said in a separate e-mailed statement. “The investment banking deal pipeline is good,” he told reporters.
CIMB wants to extend its regional reach after being Malaysia’s top underwriter for equity and rights offerings in the past three years. It has made acquisitions in Singapore, Thailand and Indonesia in the last seven years and may be one of two remaining bidders for RBS’s Asian equities, mergers and acquisitions businesses as well as its research arm, the Financial Times reported Feb. 7, citing people it didn’t name.
Philippine Talks
The Malaysian group is in separate talks with San Miguel Corp. and other shareholders to buy a 60 percent stake in Bank of Commerce, a person with knowledge of the matter said last month. It was the 16th largest lender in the Philippines by assets as of June 30 with 122 branches, according to the county’s central bank.
“Management again reassured that both mergers and acquisitions if successful won’t be financed through equity,” UOB-Kay Hian Holdings Ltd. said in a report today. “Financing will come mostly through internal funds.”
UOB upgraded the stock to “hold” and increased its price target to 6.90 ringgit from 6.20 ringgit, still below its unchanged market price of 7.14 ringgit at 11:05 a.m. in Kuala Lumpur trading today. Hong Leong Investment Bank Bhd. boosted its price target for CIMB to 7.78 ringgit from 7.69 ringgit, according to a separate broking report.
CIMB joined other Malaysian lenders Malayan Banking Bhd. and Public Bank Bhd. in posting increased earnings for the quarter as a domestic economy that expanded 5.1 percent last year helped spur demand for loans and financing. Hong Leong Bank Bhd. yesterday reported a 31 percent jump in quarterly net income, while RHB Capital Bhd. is expected to report today.
Net interest income, or revenue from borrowers after deducting interest paid to depositors, increased 7 percent to 1.76 billion ringgit in the quarter, CIMB said. Allowances for impairment losses on loans and financing grew 73 percent to 289 million ringgit, the company said.
–Editors: Barry Porter, Chan Tien Hin
To contact the reporter on this story: Chong Pooi Koon in Kuala Lumpur at pchong17@bloomberg.net
To contact the editor responsible for this story: Barry Porter in Kuala Lumpur at bporter10@bloomberg.net
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2012年2月6日星期一
Pakatan: EPF loan scheme masked to hide federal debt
Written by Super Admin
Monday, 06 February 2012 13:45
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Monday, 06 February 2012 13:45
(The Malaysian Insider) – akatan Rakyat (PR) lawmakers accused Putrajaya today abusing monies from the Employees Provident Fund (EPF) to hide its current debt levels under the guise of offering a purportedly “noble” housing scheme for lower-income earners.
Slamming the move, DAP publicity secretary Tony Pua and PKR vice-president Nurul Izzah Anwar warned in a joint statement here that the scheme could throw Malaysia into a “debt-induced financial crisis” should borrowers default on their loans.
“The Ministry of Finance (MoF) and the Federal Territories Ministry must hence come clean on why it has chosen to risk workers’ retirement savings and the real reason why the government can’t fund the housing for the poor directly.
“MoF must solve its own financial problems and not for the Malaysian workers to bear the burden of the BN (Barisan Nasional) government’s follies,” they said.
Pua and Nurul Izzah, who are the MPs for Petaling Jaya Utara and Lembah Pantai respectively, explained that under normal circumstances, any welfare programme to assist the poor would be funded by the federal government through its tax revenue.
Should the monies prove insufficient, they added, the government may issue bonds to raise money to finance its deficit expenditure.
As such, the duo pointed out that Putrajaya could have issued such bonds to the EPF and still achieve its objective of helping lower-income earners secure home loans.
“It is hence extremely odd that the Federal Territories and Urban Well-Being Minister Datuk Raja Nong Chik Nong Raja Zainal Abidin announced that the EPF would be extending RM1.5 billion in loans directly to those who failed to secure commercial loans to purchase their houses.
“The fact that the government could have easily circumvented the entire controversy… arouses suspicion that something is amiss,” Pua and Nurul Izzah said.
READ MORE HERE
Slamming the move, DAP publicity secretary Tony Pua and PKR vice-president Nurul Izzah Anwar warned in a joint statement here that the scheme could throw Malaysia into a “debt-induced financial crisis” should borrowers default on their loans.
“The Ministry of Finance (MoF) and the Federal Territories Ministry must hence come clean on why it has chosen to risk workers’ retirement savings and the real reason why the government can’t fund the housing for the poor directly.
“MoF must solve its own financial problems and not for the Malaysian workers to bear the burden of the BN (Barisan Nasional) government’s follies,” they said.
Pua and Nurul Izzah, who are the MPs for Petaling Jaya Utara and Lembah Pantai respectively, explained that under normal circumstances, any welfare programme to assist the poor would be funded by the federal government through its tax revenue.
Should the monies prove insufficient, they added, the government may issue bonds to raise money to finance its deficit expenditure.
As such, the duo pointed out that Putrajaya could have issued such bonds to the EPF and still achieve its objective of helping lower-income earners secure home loans.
“It is hence extremely odd that the Federal Territories and Urban Well-Being Minister Datuk Raja Nong Chik Nong Raja Zainal Abidin announced that the EPF would be extending RM1.5 billion in loans directly to those who failed to secure commercial loans to purchase their houses.
“The fact that the government could have easily circumvented the entire controversy… arouses suspicion that something is amiss,” Pua and Nurul Izzah said.
READ MORE HERE
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2012年1月9日星期一
PLUS issues world’s largest Sukuk worth RM30.6 billion
KUALA LUMPUR: Projek Lebuhraya Usahasama Bhd (PLUS) is set to issue RM30.6 billion Sukuk –the largest global Sukuk and Malaysia’s single largest bond issuance to date.
The Sukuk issuance, scheduled for Jan 12, follows the privatisation of PLUS Expressways Bhd (PEB) and the restructuring of the toll concessions under PEB and Penang Bridge Sdn Bhd (PBSB).
The concession agreements of these highways will be novated to PLUS, a wholly owned subsidiary of PLUS Malaysia Sdn Bhd – the investment vehicle of UEM Group Bhd (51 percent) and the Employees Provident Fund Board (EPF; 49 per cent).
Proceeds from the Sukuk issuance will be utilised to part finance the purchase of assets, liabilities, businesses, undertakings and rights of five toll concessions.
They include Projek Lebuhraya Utara-Selatan Bhd, Expressway Lingkaran Tengah Sdn Bhd, Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd, Linkedua (Malaysia) Bhd and PBSB.
The proceeds will also be utilised to fund capital expenditure, working capital and other general funding requirements.
PLUS had successfully raised the required long term financing via the establishment of up to RM34.35 billion nominal value Islamic Medium Term Notes Programmes within a compressed timeline notwithstanding the magnitude of the issuance size.
The repayment profile of the Sukuk ranges from 5 to 27 years and the weighted average yield is approximately 5 per cent.
The Sukuk was accorded the highest long-term rating of AAA by Malaysian Rating Corporation Bhd (MARC), reflecting the strong credit strength of PLUS Bhd and its importance to the Malaysian Government.
A signing ceremony was held recently to commemorate the establishment and issuance of the Sukuk.
The signatories were Datuk Izzaddin Idris, Group Managing Director/Chief Executive Officer of UEM Group, and Datuk Shahril Ridza Ridzuan, Deputy Chief Executive Officer (Investment) of the EPF.
Other signatories included Datuk Seri Nazir Razak, Group Chief Executive, CIMB Group. CIMB Investment Bank Bhd was appointed the Financial Adviser, Sole Principal Adviser, Sole Lead Arranger and Joint Lead Manager for the transaction.
Representing other Joint Lead Managers of the transaction and present at the signing ceremony were Kok Tuck Cheong, CEO of AmInvestment Bank Bhd; Datuk Seri Abdul Wahid Omar, President and CEO of Maybank Group; and Mike Chan, Officer-in-Charge of RHB Investment Bank.
Commenting on the transaction, Izzaddin Idris said: “The successful issuance and strong demand for our Sukuk demonstrates the depth and liquidity of the local market. It is also an indication of investors’ confidence towards PLUS’ operations and assets.
“I am pleased that not only are we able to successfully issue one of the world’s largest Sukuk but we are able to play a role in further enhancing Malaysia’s prominence in international Islamic capital markets in line with the Government’s aspiration to establish Malaysia as an Islamic financial hub.”
Shahril Ridza Ridzuan added: “We are confident our investment in PLUS will provide a long term and stable source of income that fits EPF’s risk-return criteria. This investment is part of our overall strategic allocation of assets into low volatility and long-term sectors. The successful Sukuk fund-raising exercise will secure a long-term profile of returns that matches our asset-liability requirements.”
Nazir commented on the significance of the event, saying: “The signing ceremony represents the culmination of our joint efforts, and I am proud to say that we have made a few landmark deals along the way.
“At RM23 billion, PEB’s delisting was the largest privatisation exercise in 2011 and the 2nd largest ever in Malaysia. And to fund this privatisation as well as the purchase of PBSB from UEM Builders Bhd, we arranged the largest syndicated loan in ASEAN in 2011. But the icing on the cake must surely be the Sukuk issuance – at RM30.6 billion, the largest ever Sukuk issuance in the world,” he said
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The Sukuk issuance, scheduled for Jan 12, follows the privatisation of PLUS Expressways Bhd (PEB) and the restructuring of the toll concessions under PEB and Penang Bridge Sdn Bhd (PBSB).
The concession agreements of these highways will be novated to PLUS, a wholly owned subsidiary of PLUS Malaysia Sdn Bhd – the investment vehicle of UEM Group Bhd (51 percent) and the Employees Provident Fund Board (EPF; 49 per cent).
Proceeds from the Sukuk issuance will be utilised to part finance the purchase of assets, liabilities, businesses, undertakings and rights of five toll concessions.
They include Projek Lebuhraya Utara-Selatan Bhd, Expressway Lingkaran Tengah Sdn Bhd, Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd, Linkedua (Malaysia) Bhd and PBSB.
The proceeds will also be utilised to fund capital expenditure, working capital and other general funding requirements.
PLUS had successfully raised the required long term financing via the establishment of up to RM34.35 billion nominal value Islamic Medium Term Notes Programmes within a compressed timeline notwithstanding the magnitude of the issuance size.
The repayment profile of the Sukuk ranges from 5 to 27 years and the weighted average yield is approximately 5 per cent.
The Sukuk was accorded the highest long-term rating of AAA by Malaysian Rating Corporation Bhd (MARC), reflecting the strong credit strength of PLUS Bhd and its importance to the Malaysian Government.
A signing ceremony was held recently to commemorate the establishment and issuance of the Sukuk.
The signatories were Datuk Izzaddin Idris, Group Managing Director/Chief Executive Officer of UEM Group, and Datuk Shahril Ridza Ridzuan, Deputy Chief Executive Officer (Investment) of the EPF.
Other signatories included Datuk Seri Nazir Razak, Group Chief Executive, CIMB Group. CIMB Investment Bank Bhd was appointed the Financial Adviser, Sole Principal Adviser, Sole Lead Arranger and Joint Lead Manager for the transaction.
Representing other Joint Lead Managers of the transaction and present at the signing ceremony were Kok Tuck Cheong, CEO of AmInvestment Bank Bhd; Datuk Seri Abdul Wahid Omar, President and CEO of Maybank Group; and Mike Chan, Officer-in-Charge of RHB Investment Bank.
Commenting on the transaction, Izzaddin Idris said: “The successful issuance and strong demand for our Sukuk demonstrates the depth and liquidity of the local market. It is also an indication of investors’ confidence towards PLUS’ operations and assets.
“I am pleased that not only are we able to successfully issue one of the world’s largest Sukuk but we are able to play a role in further enhancing Malaysia’s prominence in international Islamic capital markets in line with the Government’s aspiration to establish Malaysia as an Islamic financial hub.”
Shahril Ridza Ridzuan added: “We are confident our investment in PLUS will provide a long term and stable source of income that fits EPF’s risk-return criteria. This investment is part of our overall strategic allocation of assets into low volatility and long-term sectors. The successful Sukuk fund-raising exercise will secure a long-term profile of returns that matches our asset-liability requirements.”
Nazir commented on the significance of the event, saying: “The signing ceremony represents the culmination of our joint efforts, and I am proud to say that we have made a few landmark deals along the way.
“At RM23 billion, PEB’s delisting was the largest privatisation exercise in 2011 and the 2nd largest ever in Malaysia. And to fund this privatisation as well as the purchase of PBSB from UEM Builders Bhd, we arranged the largest syndicated loan in ASEAN in 2011. But the icing on the cake must surely be the Sukuk issuance – at RM30.6 billion, the largest ever Sukuk issuance in the world,” he said
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