The types of corporate bonds issued on the Malaysian capital market are classified as straight, convertible, bonds with warrants, floating rate, zero coupon, mortgage bonds, Islamic bonds, secured and unsecured bonds, and guaranteed bonds.
Commercial Paper is a form of short-term revolving promissory note with maturity from 1 month to 1 year.
Medium-Term Notes have tenors from 1 to 5 years and may be issued either on conventional or Islamic principles, by direct placement or tender.
The National Mortgage Corporation (Cagamas) is the major issuer of asset-backed securities in Malaysia. There are five types of Cagamas Issues :
Cagamas Fixed Rate Bonds have tenures of 1.5 to 10 years with fixed coupon rates determined through tenders submitted by Principal Dealers. Interest is paid semiannually.
Cagamas Floating Rate Bonds have tenures of up to 10 years and an adjustable interest rate pegged to the 3-month or 6-month KLIBOR. The interest rate is reset every 3 or 6months with interest paid at those intervals, respectively.
Cagamas Notes are short-term instruments with maturities between 1 and 12 months, issued at a discount from face value, to reflect the implied interest rate.
Sanadat Mudharabah Cagamas are Islamic bonds issued under the Islamic principle of Mudharabah (profit-sharing) to finance the purchase of Islamic home-financing debts, granted on the basis of Bai Bithaman Ajil and the purchase of Islamic hire-purchase debts, granted under the principle of Ijarah Thumma Al-Bai. They are redeemable at par at maturity unless there is principal diminution. Tenures extend up to 10 years.
Sanadat Cagamas are also Islamic bonds issued under the Islamic principle of Bai Bithaman Ajil to finance the purchase of Islamic home-financing debts and Islamic hire purchase debts. The bonds are redeemable at par together with the dividend due on maturity date. They also have tenures of up to 10 years.
Khazanah bonds are unsecured zero coupon bonds under the Islamic principle of Murabahah with maturities ranging from 3, 5, 7 up to 10 years.
Quarterly statistics of corporate debt securities approved by the Securities Commission (SC) are available at the web link below. |