PETALING JAYA: Chemical Company of Malaysia Bhd (CCM) has accepted a US$25 million (RM100 million) Commodity Murabahah Term Financing-i Committed facility from Sumitomo Mitsui Banking Corporation Malaysia Bhd (SMBC) to facilitate its overall cash-flow planning and loan restructuring exercise.
CCM said in a bourse filing that it already has an outstanding term loan with SMBC of RM150.57 million which is maturing on April 30.
In addition to that, the group has undertaken several divestment initiatives to pare down its existing borrowings which includes the disposal of its Shah Alam land for RM190 million and 8.39% equity interest in Pangen Biotech Inc for RM59.2 million.
The proceeds from these disposals would only be received in the second half of 2018 and “would not be timely with the maturity date of the current outstanding loan with SMBC on April 30.”
The company has received the approval of Bank Negara Malaysia to enter into a cross currency swap for the facility from SMBC.
CCM’s shares gained 0.98% to RM2.05 with 60,200 shares done.
PETALING JAYA: RAM Ratings said corporate bond issuance nearly doubled to RM13.1 billion in March from RM6.9 billion in February, but it cautioned that the future issuance amount could moderate as local bond yields are likely to face upward pressure in tandem with higher global yields.
The rating agency said in a statement that much of the upturn was attributed to the private sector (particularly banking entities), which added RM7.9 billion to gross issuance.
This also lifted the year-on-year issuance by 7.3% to RM29.6 billion for the first quarter of 2018 against RM27.6 billion recorded in the same quarter a year ago.
RAM Ratings also noted that foreign holdings of Malaysian bonds recorded a net inflow of RM2.9 billion, the bulk of which (around 72.2% of total inflows) constituted shorter-term papers.
However, with a large share of foreign bond flows so far this year attributed to holdings in short-term papers, it said global uncertainties and developments may lead to continued fluctuations in foreign bond holdings down the line.
The resilience of the ringgit in March also helped to attract investors, according to RAM Ratings.
“The ringgit continued to appreciate in April, strengthening to below RM3.88 against the US dollar in the first two weeks, as the dip in tech stocks and concerns over an increased likelihood of a US-China trade war grew, putting downward pressure on the US dollar.
“As the situation is still developing, capital markets and the US dollar in particular are expected to remain volatile as new information comes to the fore.”
Speaking of the impact of the 14th General Election, it opined that the run-up to the polls are not expected to disrupt the bond market to a great extent, as demonstrated in the past.
KUALA LUMPUR, April 18 — Malayan Banking Bhd (Maybank), Malaysia’s biggest bank, is preparing to spin off and list its Etiqa insurance arm on the local stock exchange, sources with knowledge of the matter said today. Etiqa, which operates in…
SYDNEY, April 18 — Australian Treasurer Scott Morrison warned that financial sector executives responsible for widespread breaches of corporate law could face jail, as a powerful judicial inquiry heard more evidence of misconduct by the…
SINGAPORE, April 18 — Most South-east Asian shares rose in line with broader Asia today after upbeat corporate earnings on Wall Street boosted investor confidence. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent…
MUMBAI, April 18 — India’s government and the central bank said yesterday they will ensure there is an adequate amount of cash in circulation, following reports that banks’ automated teller machines (ATMs) had run out of notes in different parts…
BEIJING, April 17 — The IMF said today it remains upbeat about the economic prospects of emerging Asia, labelling the region “the most important engine of global growth” despite concerns over trade disputes and mounting debt. The…
KUALA LUMPUR, April 17 — Malayan Banking Bhd (Maybank) expects the number of its online banking transactions in Malaysia to increase to 6.4 billion in 2018, aided by the new Maybank2u website which will be launched this Thursday. Maybank’s…
KUALA LUMPUR: Malayan Banking Bhd (Maybank) will launch its revamped Maybank2u website to the public on Thursday and expects the number of its online banking transactions to increase to 6.4 billion in 2018.
Since the introduction of the bank's online banking service in 2000, the number of transactions conducted on its online platform reached 4.27 billion in 2017.
The new Maybank2u comes with a complete change of user interface and offers an enhanced experience when transacting. It has also been simplified.
A progressive rollout of the new website will soon start, and during the initial phase, the classic site continues to be available.