Posted Date : 05 Feb 2014

Malaysian Rating Corporation Berhad (MARC) said today that CIMB Investment Bank Berhad (CIMB Investment) and Maybank Investment Bank Berhad (Maybank Investment) maintained top spots in MARC’s 2013 Lead Managers League Tables. CIMB Investment claimed top spot based on issue value, whilst Maybank Investment was in pole position based on issue count.

This marks CIMB Investment’s second consecutive year at the top of the issue-value league table with an issue value of RM14.9 billion. Maybank Investment came in second with an issue value of RM10.4 billion, whilst AmInvestment Bank Berhad came in third with RM2.2 billion. In the issue-count league table, Maybank Investment topped the list with seven issues, followed closely by CIMB Investment and RHB Investment Bank Berhad with five and three issues, respectively.

In 2013, MARC rated a total of 17 new issuances with total debt size of RM31.0 billion, as compared with 11 issuances totalling RM37.5 billion in 2012. Islamic bond or sukuk issuances again dominated the issuance of rated fixed-income securities, comprising 60.4% of the total issue value and 58.8% of the total issue count rated by MARC in 2013.

Noteworthy MARC-rated issuances in the year were CIMB Bank Bhd’s RM10.0 billion Basel-III compliant Tier-2 Subordinated Debt Programme, Malakoff Power Bhd’s RM5.38 billion Sukuk Murabahah, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd’s RM2.3 billion Sukuk Musharakah, Kapar Energy Ventures Sdn Bhd’s RM2.0 billion Sukuk Ijarah and TNB Northern Energy Bhd’s RM1.6 billion issuance of Sukuk.

Details of MARC’s 2013 Lead Managers League Tables are as follows:

Lead managers league table for january-december 2013 - by issue value
(RM million) 

No. Lead Managers Conventional Islamic Total
1 CIMB Investment Bank Berhad 10,180.0 4,687.0 14,867.0
2 Maybank Investment Bank Berhad 600.0 9,783.0 10,383.0
3 AmInvestment Bank Berhad 200.0 2,000.0 2,200.0
4 RHB Investment Bank Berhad 1,000.0 595.0 1,595.0
5 HSBC Amanah Malaysia Berhad   812.5 812.5
6 KAF Investment Bank Berhad   812.5 812.5
7 Standard Chartered Bank Malaysia Berhad 100.0   100.0
8 Hong Leong Investment Bank Berhad 100.0   100.0
9 OCBC Bank (Malaysia) Berhad 100.0   100.0
  TOTAL 12,280.0 18,690.0 30,970.0

Lead managers league table for january-december 2013 - by issue count

No. Lead Managers Conventional Islamic Total
1 Maybank Investment Bank Berhad 2 5 7
2 CIMB Investment Bank Berhad 2 3 5
3 RHB Investment Bank Berhad 1 2 3
4 AmInvestment Bank Berhad 1 1 2
5 Standard Chartered Bank Malaysia Berhad 1   1
6 HSBC Amanah Malaysia Berhad   1 1
7 Hong Leong Investment Bank BerhadOCBC Bank (Malaysia) Berhad 1   1
8 OCBC Bank (Malaysia) Berhad 1   1
9 KAF Investment Bank Berhad   1 1
  TOTAL 9 13 22

Issue-value credit is given to lead managers based on the agreed credit-sharing arrangement among lead arrangers for jointly arranged programmes. Issue-count credit is given equally to lead managers for jointly arranged programmes. The updated detailed criteria for MARC Lead Managers League Tables can be obtained here:

MARC expects gross newly rated bonds/sukuk issuance volume to be in the range of RM45 - RM55 billion in 2014. Together with unrated private debt securities of an expected RM15 - RM20 billion, MARC forecasts a total of RM60 - RM75 billion of new private debt securities will be issued this year. MARC anticipates rated issuance volume in 2014 to moderate on the back of subdued domestic economic trends and the uncertainties engendered by the pace of tapering of the US bond-purchase programme.

MARC expects domestic bond issuance to emanate predominantly from the companies involved in infrastructure, and oil and gas sectors given the significant continuous focus on these sectors as key drivers of growth under the Economic Transformation Programme. Other sectors that could witness potential significant bond-issuance activities are real estate and construction. MARC’s forecast assumes the current credit-spread trend and the low interest-rate environment will prevail, although the rating agency has factored a 25-bps rise in the overnight policy rate (OPR) to 3.25%.

Contact: James Foo, +603-2082 2212 / james@marc.com.my.