How to Invest
Choosing the Securities you Want to Buy
Corporate Securities At-A-Glance
1. Commercial Papers
| Instruments | A. Conventional Commercial Papers B. Islamic Commercial Papers |
| Issuer | Malaysian corporations |
| Tenor | 1 – 12 months |
| Currency | Malaysian ringgit |
| Interest Payment | Commercial papers are issued on a discount basis. |
| Average Issue Size | No standard amount |
| Minimum Amount of Tender | MYR1 million |
| Method of Sale in the Primary Market | Tender or private placement |
| Who May Apply | Corporations and selected subscribers via FAST |
| Redemption | Bullet repayment of face value upon maturity. |
| Taxation | Exempt from interest income tax and capital gains tax. |
| Secondary Market Trading | Over-the-counter |
2. Medium Term Notes
| Instruments | A. Conventional Medium Term Notes B. Islamic Medium Term Notes |
| Issuer | Malaysian Corporations |
| Tenor | 1 – 7 years |
| Currency | Malaysian ringgit |
| Interest Payment | A. Fixed- and floating-rate B. Islamic notes provide semiannual dividends depending on principle used |
| Average Issue Size | MYR5 million |
| Minimum Amount of Tender | MYR250,000 |
| Method of Sale in the Primary Market | Tender or private placement |
| Who May Apply | Financial institutions, asset managers, insurance companies, statutory bodies, and selected subscribers via FAST |
| Redemption | Redeemable at par upon maturity |
| Taxation | Exempt from interest income tax and capital gains tax. |
| Secondary Market Trading | Over-the-counter |
3. Private Corporate Bonds
| Instruments | A. Conventional Private Debt Securities B. Islamic Private Debt Securities |
| Issuer | Malaysian Corporations |
| Tenor | A. 1 – 20 years B. 3 – 20 years |
| Currency | Malaysian ringgit |
| Interest Payment | Fixed-rate, floating-rate, zero coupon, or structured |
| Average Issue Size | MYR100 million – 1 billion |
| Minimum Amount of Tender | MYR 250,000 |
| Method of Sale in the Primary Market | Financial institutions, asset managers, insurance companies, statutory bodies, and selected subscribers via FAST |
| Who May Apply | Financial institutions, asset managers, insurance, statutory bodies |
| Redemption | Redeemable at par upon maturity |
| Taxation | Exempt from interest income tax and capital gains tax. |
| Secondary Market Trading | Over-the-counter |
Commercial Papers, Medium Term Notes and Corporate Bond Issuers
Commercial Papers (CPs) and Medium Term Notes (MTNs) are short- and medium-term promissory notes issued by corporations to finance short-term capital needs. MTNs have various forms such as conventional fixed-rate, convertibles, low coupons with equities attached, and zero coupon Islamic bonds. Corporate bond structures vary, such as fixed- or floating-rate, step up, zero coupon, and with warrants attached. CPs, MTNs and asset-backed securities are also issued by Malaysian corporations.