Malaysian Rating Corporation Berhad (MARC) said today that CIMB Investment Bank Berhad (CIMB) was the top arranger of MARC-rated debt and sukuk programmes/issuances for the fifth consecutive year in 2016. CIMB headed MARC’s 2016 lead managers’ league table with RM8.63 billion in total rated size spread over seven issues. The 2016 league table also saw Maybank Investment Bank Berhad retaining runner-up position with RM5.32 billion in total rated size in six issues, followed by AmInvestment Bank Berhad in third place.

In 2016, the market recorded lower overall volume and number of new rated issuers. During the year, MARC assigned new issue ratings to eight (8) issuers with a total programme size of RM13.1 billion, as compared to ten (10) issuers totalling RM36.6 billion in 2015. Sukuk again dominated the issuance of rated fixed-income securities, comprising RM12.6 billion (96%) of the total issue value rated by MARC in 2016.

The smaller volume and number of issuers rated by MARC in 2016 compared to a year ago mirrors the decline in the proportion of aggregate rated issuances in domestic bond and sukuk markets. At the national level, rated bonds have declined to 51% of total bonds in 2016 as compared to 65% in 2015. However, a relatively modest decrease in total gross corporate bond issuance was recorded in 2016 at RM84.8 billion (2015: RM85.0 billion).

“There were fewer rated bond deals in 2016 in both the infrastructure and corporate finance space; however, we are seeing an uptick in corporate and project finance activity since the year began and are encouraged by the active pipeline for new greenfield projects in 2017,” said MARC Chief Executive Officer Mohd Razlan Mohamed. Notable MARC-rated issuances in 2016 include Lebuhraya Duke Fasa 3’s RM3.64 billion sukuk wakalah issuance, which was recognised as “2016 Islamic Issue of the Year” by IFR Asia Awards 2016. In the multilateral space, MARC rated the Islamic Development Bank’s maiden ringgit-denominated sukuk wakalah issuance of up to RM400.0 million through its special purpose funding vehicle, Tadamun Services Berhad.

Published annually, the league tables rank the lead managers by volume and number of lead-arranged MARC-rated issuances in any given year. The tables provide a useful indication of domestic corporate and project bond and sukuk issuance activity, particularly in the rated segment.

Details of MARC’s 2016 League Tables are as follows:

LEAD MANAGERS’ LEAGUE TABLE FOR JANUARY-DECEMBER 2016
(by rated issued value in RM million)

Note:

Rated issued value credit is given to lead managers based on the programme-specific arrangements between lead arrangers for jointly arranged programmes. Equal issue count credit is given to lead managers for jointly arranged programmes.

Contacts:
Ahmad Feizal Sulaiman Khan, +603-2082 2211/ feizal@marc.com.my;
Lana Mahbob, +603-2082 2212/ lana@marc.com.my.