KUALA LUMPUR (Feb 16): RAM Ratings is expecting RM85 billion to RM95 billion of gross private debt securities (PDS) issuance in 2015, against the RM85.5 billion that was issued in 2014.

"Moving forward, we expect RM85 billion-RM95 billion of gross issuance in 2015, mainly supported by financing for infrastructure projects and further capital-raising efforts by financial institutions (FIs)," RAM said in a statement today.

The rating agency also said that despite the higher financing costs due to the higher overnight policy rate (OPR), 2014 still witnessed a 1.9% higher gross issuance in the PDS market, as compared to RM83.9 billion in 2013.

Bank Negara Malaysia had in July last year increased the OPR by 25 basis points to 3.25%.

"FIs played a major role in boosting the domestic PDS market last year, accounting for 59% of total PDS issuance," RAM said.

Banks that made big issuances and had their securities rated by RAM include Maybank Investment Bank (MIB), which had close to RM25 billion of issuances.

This is also equivalent to 33.6% of the RM74.4 billion RAM-rated PDS and sukuk last year.

"Meanwhile, CIMB Investment Bank (IB) led the pack in terms of the largest number of PDS and sukuk issues arranged at 13," RAM said.

Although MIB took pole position as the arranger with the highest value of sukuk deals - about RM14.5 billion (33.8% of the sukuk rated by RAM) - it shared the spotlight with CIMB IB in terms of the highest number of sukuk transactions arranged (7 each - collectively representing 40% of all of RAM-rated sukuk issues)," it added.

RAM also said it had rated several landmark deals which involved foreign issuers who made their debut in the ringgit bond market in 2014.

Turkiye Finans Katilim Bankasi, according to RAM, was the first European entity that raised fund through the ringgit bond market, with its RM3 billion Sukuk Murabahah Medium Term Note (MTN) Programme (via financing conduit TF Varlik Kiralama A.S.).

Another newcomer was CIMB Thai Bank plc, with its RM2 billion Tier-2 Subordinated Debt Programme.

"CIMB Thai is the first Thai entity to issue capital securities in Malaysia. RAM is pleased to play a part in this positive development in ASEAN cross-border funding - a key initiative of the ASEAN Economic Community," RAM's chief executive officer Foo Su Yin said in the statement today.

RAM also said it had rated the world's first sukuk which issued by a Japanese commercial bank, Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd, which issued a US$500 million Multi-Currency Sukuk Wakalah Bi Allstithmar Programme.

"Another RAM-rated issuer of note is AmIslamic Bank Berhad, which issued the first Basel III-compliant sukuk in Malaysia, valued at RM3 billion," RAM added.