KUALA LUMPUR (June 23): CIMB Group Holdings Bhd said it had gained the Securities Commission's (SC) approval to issue RM6 billion worth conventional and Islamic bonds.

In a filing to Bursa Malaysia, CIMB (fundamental: 1.05; valuation: 2.25) said the SC had approved its conventional and Islamic commercial papers programme last Friday.

CIMB said the bonds would "replace its conventional commercial papers programme and Islamic commercial papers programme, which expired on September 4, 2014 and March 4, 2015".

According to CIMB, proceeds from the RM6 billion issuance would be used to refinance borrowings, and fund asset acquisitions and working capital needs.

CIMB said RAM Rating Services Bhd had accorded an initial rating of P1 for the bonds.

CIMB Investment Bank Bhd is the principal adviser, lead arranger and manager for the entire fundraising exercise. CIMB Islamic Bank is adviser for the Islamic portion.

At 10.44am, CIMB shares fell one sen or 0.18% to RM5.59 for a market capitalisation of RM47.46 billion.

A total of 663,400 shares changed hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)