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.