KL relaxes bond regulation

KL relaxes bond regulation

KUALA LUMPUR (AFP): In a move to stimulate the private debt securities market, domestic and foreign companies are now allowed to issue bonds without the central bank's approval, reports said Tuesday.

Bank Negara Malaysia governor Ali Abul Hassan Sulaiman was quoted as saying that the move was part of measures to accelerate the development of the capital market.

"This is subject to the conditions that the proceeds of the bonds issue are not used to finance investment abroad or refinance offshore borrowings as well as meeting the other normal conditions on the issuance of private debt securities," he was quoted as saying by the Business Times.

Ali Abul said foreign-owned companies issuing corporate bonds on a tender basis would also be exempt from a requirement to raise 60 percent from local sources.