Posted Date : 12 Feb 2009
CIMB Investment Bank Berhad topped MARC’s 2008 Lead Managers League Table as the lead manager for the highest value and number of conventional bond issuances. RHB Investment Bank Berhad and OCBC Bank (Malaysia) Berhad ranked second and third respectively in terms of conventional bonds issue value. RHB Investment Bank Berhad and Hwang-DBS Investment Bank Berhad took the second and third spot for the highest number of conventional bond issues completed during 2008.
For Islamic Issues, OSK Investment Bank ranked number one in terms of issue value, followed by Maybank Investment Bank Berhad and MIDF Amanah Investment Bank Berhad. In terms of the number of Islamic issues, MIDF Amanah Investment Bank Berhad, Maybank Investment Bank Berhad and OCBC Bank Berhad achieved first, second and third placing respectively.
LEAD MANAGERS LEAGUE TABLE AS AT 31 DECEMBER 2008
- By Issue Value (RM’ million)
| No | Lead Managers | Conventional | Islamic | Total | ||||
| 1 | . | CIMB Investment Bank Berhad | 7,533.3 | 250.0 | 7,783.3 | |||
| 2 | . | RHB Investment Bank Berhad | 3,403.3 | 3,403.3 | ||||
| 3 | . | OCBC Bank (Malaysia) Berhad | 1,933.3 | 190.0 | 2,123.3 | |||
| 4 | . | Maybank Investment Bank Berhad (formerly known as Aseambankers Malaysia Berhad) | 200.0 | 720.0 | 920.0 | |||
| 5 | . | OSK Investment Bank Berhad | 800.0 | 800.0 | ||||
| 6 | . | MIDF Amanah Investment Bank Berhad | 615.0 | 615.0 | ||||
| 7 | . | HSBC Bank Malaysia Berhad | 500.0 | |||||
| 8 | . | Kuwait Finance House (Malaysia) Berhad | 250.0 | 250.0 | ||||
| 9 | . | Bank Islam Malaysia Berhad | 250.0 | 250.0 | ||||
| 10 | . | HWANG-DBS Investment Bank Berhad | 250.0 | 250.0 | ||||
| 11 | . | KAF Investment Bank Berhad | 70.0 | 70.0 | ||||
| Total | 13,820.0 | 3,145.0 | 16,965.0 |
LEAD MANAGERS LEAGUE TABLE AS AT 31 DECEMBER 2008
- By Number of Issues
| No | Lead Managers | Conventional | Islamic | Total | ||||
| 1 | . | CIMB Investment Bank Berhad | 6 | 1 | 7 | |||
| 2 | . | MIDF Amanah Investment Bank Berhad | 5 | 5 | ||||
| 3 | . | Maybank Investment Bank Berhad (formerly known as Aseambankers Malaysia Berhad) | 1 | 4 | 5 | |||
| 4 | . | RHB Investment Bank Berhad | 4 | 4 | ||||
| 5 | . | OCBC Bank (Malaysia) Berhad | 2 | 2 | 4 | |||
| 6 | . | HWANG-DBS Investment Bank Berhad | 3 | 3 | ||||
| 7 | . | Kuwait Finance House (Malaysia) Berhad | 1 | 1 | ||||
| 8 | . | Bank Islam Malaysia Berhad | 1 | 1 | ||||
| 9 | . | OSK Investment Bank Berhad | 1 | 1 | ||||
| 10 | . | HSBC Bank Malaysia Berhad | 1 | 1 | ||||
| 11 | . | KAF Investment Bank Berhad | 1 | 1 | ||||
| Total | 17 | 16 | 33 |
The strong market for new issuance of corporate bonds in early 2008 made way for a challenging period, particularly in the second half of 2008. Notwithstanding, MARC completed ratings of 43 bonds with a combined value of RM27.4 billion during the year, in which 33 bonds with a total value of RM17 billion were issued.
The financial institution sector accounted for the greater part of the new issuance volume in 2008. Issuers in this category are The Export-Import Bank of Korea (KEXIM) with a total value of RM3.0 billion and CIMB Bank Berhad with three issues with a total combined value of RM6.5 billion. Other financial institutions include OCBC Bank Limited with RM2.5 billion subordinated bonds, Woori Bank with RM1.0 billion Medium Term Notes and State Bank of India with RM500 million Senior Unsecured Bonds.
MARC expects that the slowdown in economic activity would be accompanied by lower financing needs as corporates scale down or put their expansion plans on hold. In addition, the challenging business environment in 2009, as is becoming evident from the release of recent economic data, will further exert downward pressure on corporate credit quality limiting the supply of higher rated bonds for investors. Hence, MARC believes that the corporate bond market activity to remain subdued in the first half of 2009 with corporate bond issuance expected to be in the range of RM25-30 billion for 2009.
Contacts: Roza Shahnaz Omar 03-2090 2214/ roza@marc.com.my;
Shanizar Ahmad Shahar 03-20902212/ shanizar@marc.com.my.
