CIMB Investment Bank Berhad (CIMB) was the top arranger of MARC-rated debt and sukuk programmes (issue value) for the sixth consecutive year in 2017, followed by Maybank Investment Bank Berhad (MIBB) in second place and RHB Investment Bank Berhad in third. Taking pole spot for the programme size (issue count) category was Maybank Investment Bank Berhad (MIBB) with 11 rated programmes comprising eight sukuk and three bond issuances, while runner-up for the issue count category was CIMB followed by AmInvestment Bank Berhad.
In 2017, MARC assigned 17 ratings to corporate debt programmes worth RM30.7 billion (2016: eight ratings; RM13.1 billion). For the first time ever, the sukuk market saw the entry of renewable energy project bonds, namely solar projects. MARC views that the bond markets are emerging as credible alternative sources of financing for renewable energy, as investors gain better understanding of this energy form coupled with encouragement from the government through its Sustainable and Responsible Investment (SRI) and Environmental, Social and Governance (ESG) initiatives. MARC also rated the largest single solar project of 150MW (50MW x 3) in the country, Quantum Solar Park Semenanjung’s Green SRI Sukuk.
MARC recently published its Impact Bond Assessments Criteria, which comprise opinions on the green, social or sustainability credentials of bonds issued to fund SRI projects. MARC views that the addressable universe for this analytical offering would be fixed-income financial instruments issued for the purpose of funding projects with positive environmental and/or social outcomes. Earlier this year, two MARC-rated sukuk programmes were offered to the market: Sinar Kamiri Sdn Bhd’s (SKSB) Green SRI Sukuk Wakalah of up to RM245.0 million and UiTM Solar Power Sdn Bhd’s (UiTM Solar) Green SRI Sukuk of up to RM240.0 million.
In addition to the renewable energy project bonds, other notable MARC-rated issuances in 2017 include BEWG (M) Sdn Bhd’s (BEWG) RM400.0 million Sukuk Wakalah, the first-ever ringgit-denominated sukuk issued by a Chinese conglomerate for a water infrastructure project. BEWG is a subsidiary of Beijing Enterprises Holding Limited (BEHL), a state-owned company involved in water, sewerage and natural gas operations in China. In the same year, MARC also rated Southern Power Generation Sdn Bhd’s (Southern Power) RM4.0 billion Sukuk Wakalah. Southern Power is a joint venture between Tenaga Nasional Berhad (TNB) and SIPP Energy Sdn Bhd, and proceeds from the sukuk will be utilised to develop a 2x720-MW combined cycle gas-fired plant in Pasir Gudang, Johor.
For 2018, MARC expects a strong upward momentum in private investments, based on the value of Malaysia’s corporate bond issuance in 2017which surpassed RM100 billion compared with RM86.0 billion in 2016. As for the primary market for corporate bonds, MARC foresees total gross corporate bond issuance in 2018 to range between RM90.0 billion and RM100.0 billion.
Published annually, MARC’s Lead Managers’ League Tables provide a meaningful measure of domestic corporate and project bond and sukuk issuance activity given that only issuances that have attained financial close are included.
Details of MARC’s 2017 League Tables are as follows:
LEAD MANAGERS’ LEAGUE TABLE FOR JANUARY-DECEMBER 2017
(by rated issued value in RM million)
|1||CIMB Investment Bank Berhad||585.0||13,100||13,685|
|2||Maybank Investment Bank Berhad||485.0||5,200||5,685|
|3||RHB Investment Bank Berhad||-||3,049||3,049|
|4||AmInvestment Bank Berhad||-||2,027||2,027|
|5||Affin Hwang Investment Bank Berhad||-||645||645|
|6||HSBC Amanah Malaysia Berhad||-||500||500|
|7||MIDF Amanah Investment Bank Berhad||-||500||500|
|8||Bank Pembangunan Malaysia Berhad||-||500||500|
|9||Kenanga Investment Bank Berhad||-||150||150|
|10||Hong Leong Investment Bank Berhad||100||-||100|
|11||Industrial and Commercial Bank of China (Malaysia) Berhad||-||60||60|
(by issue count)
|1||Maybank Investment Bank Berhad||3||8||11|
|2||CIMB Investment Bank Berhad||4||5||9|
|3||AmInvestment Bank Berhad||-||3||3|
|4||Affin Hwang Investment Bank Berhad||-||2||2|
|5||RHB Investment Bank Berhad||-||2||2|
|6||Bank Pembangunan Malaysia Berhad||-||1||1|
|7||HSBC Amanah Malaysia Berhad||-||1||1|
|8||Industrial and Commercial Bank of China (Malaysia) Berhad||-||1||1|
|9||Kenanga Investment Bank Berhad||-||1||1|
|10||MIDF Amanah Investment Bank Berhad||-||1||1|
|11||Hong Leong Investment Bank Berhad||1||-||1|
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