KUALA LUMPUR (July 18): CIMB Group Holdings Bhd's subsidiary CIMB Bank Bhd has proposed to issue US$20 million (about RM84.11 million) worth of bonds under CIMB Bank’s US$5 billion Euro Medium Term Note Programme (EMTN).

In a filing with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website on Friday (July 16), CIMB Investment Bank Bhd, which is facilitating the bond sale, said CIMB Bank’s US$20 million scheme pays investors an interest rate of 1.35% a year.

CIMB Investment Bank said the five-year US$20 million scheme, which will be issued on Wednesday (July 21, 2021), will mature on July 21, 2026.

According to CIMB Investment Bank, the unrated US$20 million programme will be listed on Bursa Malaysia "under the exempt regime".

Under the exempt regime, bonds are listed in Bursa but will not be traded on the bourse.

CIMB Investment Bank said dealers for the US$20 million bonds are Daiwa Capital Markets Singapore Ltd and CIMB Bank’s Labuan offshore branch.

CIMB Bank’s EMTN programme of up to US$5 billion allows the issuer to increase the amount under the scheme in accordance with the terms of the dealer agreement and subjected to approvals from BNM and the Securities Commission Malaysia, according to CIMB Investment Bank.

According to online reports, EMTNs involve debt securities which are issued and transacted outside the US and Canada.

EMTNs, which are seen as a flexible fund-raising scheme, allow issuers to issue the securities in several currencies and under different maturities.

At Bursa on Friday (July 16), CIMB Group’s share price closed down one sen or 0.22% at RM4.53 for a market value of about RM44.94 billion.

CIMB Group has 9.92 billion issued shares.