CIMB Investment Bank and BTMUFJ Malaysia to jointly advise funding programmes
(26 June 2015 – Malaysia) CIMB Investment Bank and Bank of Tokyo Mitsubishi UFJ Malaysia will jointly advise Toyota Capital Malaysia Sdn Bhd’s combined conventional and Islamic fundraising programmes of up to RM2.5 billion (A$862 million).
The agreements are to establish a Commercial Papers (CP) Programme and a Medium Term Notes (MTN) Programme together with an Islamic Commercial Paper (ICP) Programme and an Islamic Medium Term Notes (IMTN) Programme based on the Shariah principle of Musharakah, these have a combined limit of up to RMB2.5 billion and are guaranteed by Toyota Motor Finance (Netherlands) B.V.
CIMB Investment Bank and BTMU Malaysia together are the Joint Principal Advisers, Joint Lead Arrangers, Joint Lead Managers and Joint Bookrunners for the Notes Programmes and Sukuk Programmes.
CIMB Islamic Bank Bhd is the Shariah Adviser for the Sukuk Programmes.
The establishment of both Notes Programmes and Sukuk Programmes is the largest to-date for a Japanese corporate in Malaysia.
CIMB said in a statement this landmark transaction is reflective of the continued interest by Japanese corporates in Malaysia to tap the debt capital markets as an alternative source of funding.
Furthermore, the Notes Programmes and Sukuk Programmes provide Toyota Capital Malaysia the funding flexibility to address both its short term and long term, as well as Islamic and conventional funding requirements.
Toyota Capital Malaysia has been accorded by RAM Ratings Services Berhad, a long term rating of AAA(s)/Stable for the MTN Programme and the IMTN Programme, and short term rating of P1(s)/Stable for the CP Programme and ICP Programme.
The tenure of the CP Programme and ICP Programme is up to seven years from the date of the first issuance whilst the MTN Programme and the IMTN Programme have tenure of up to 15 years from the date of the first issue, respectively.
“We are delighted to have CIMB and BTMU as our core banking partners, and value their expertise and strong execution capabilities in the debt capital markets,” said Kuah Kock Heng, president of Toyota Capital Malaysia.
“These new programmes will further strengthen the funding structure of Toyota Capital Malaysia to meet its mid-term expansions in both conventional and Islamic Auto Finance for Toyota and Lexus customers in Malaysia,” he said.
“These transactions mark another successful collaboration between BTMU Malaysia, who has a proven track record of assisting Japanese corporations to tap the Malaysian debt capital markets, and CIMB Investment Bank, our strategic partner and one of the key players in the Malaysian debt capital markets with an extensive distribution network,” said Naoki Nishida, president and chief executive, BTMU Malaysia.