KUALA LUMPUR (May 10, 2013): Export-Import Bank of
Malaysia Bhd (Exim Bank) plans to sell non-ringgit denominated Islamic
bonds, or sukuk, in global markets this year to help fund future growth,
its managing director Datuk Adissadikin Ali said.
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/exym/Article/
Published: May 10, 2013
Source from (The Sun Daily): http://www.thesundaily.my/news/693431
Published: May 10, 2013
He, however, declined to say how much will be issued, except that it will be "significant".
"We plan to issue the sukuk this year as the timing is right," he
told pressmen after a collaboration signing ceremony between Exim Bank
and Indonesia's PT Senagan Energi here yesterday.
The sale would be Exim Bank's second foray into the international
debt arena after the US$1.5 billion (RM4.5billion) multicurrency medium
term note programme (MTN) issued last year.
"We have tapped up to US$700 million from the MTN programme so far," Adissadikin said.
Exim Bank wants to increase its Islamic finance portfolio to at least
30% of the total loans by 2015 in tandem with increasing demand for its
Islamic finance facility.
It is projecting its total loan disbursement to hit RM5 billion this year.
Adissadikin believes that Islamic financing will make take a up a big
slice of the RM5 billion loan disbursements targeted for this year.
In the first three months of 2013, Exim Bank has approved up to RM2
billion loans to some 20 companies. 'We are on track to meet our full
year target," he said.
Adissadikin also said Exim Bank is looking to secure three to four infrastructure projects in Indonesia this year.
"We see Indonesia as a place with a big need for electricity and that
is why apart from normal electricity generation we are looking at
renewable energy production," he said, adding the country has ample
natural resources to meet its rising needs.
The bank is providing US$24.4 million financing to Senagan Energi to
build a 10-megawatt river hydro-power plant on the Kreung Isep River in
Nagan Raya regency in Aceh.
"With a total development cost of US$30.7 million, the hydro-power
plant will benefit and contribute to the economic development, recovery
and reconstruction of Aceh Province," said Adissadikin.
The project is scheduled to begin construction in June this year and start operations in August 2015.
Meanwhile, Adissadikin warned that the current political situation,
if prolonged, could lead the country to earn negative credit rating,
deter investments and disrupt economic growth.
"Malaysia needs stability and that is important to international investors," he told SunBiz. He noted that the credit rating of the country is important as it plays on investors minds at all time.
A negative rating could have adverse impact over the issuance of sovereign bonds by the government, making it uncompetitive.
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