Maybank arm says did not proceed with baht bond issuance as it secured more cost-effective funding

Maybank arm says did not proceed with baht bond issuance as it secured more cost-effective funding
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KUALA LUMPUR (April 8): Malayan Banking Bhd's (Maybank) investment banking arm Maybank Kim Eng Group confirmed today Maybank Kim Eng Securities (Thailand) Pcl has cancelled its proposed baht-denominated bonds, as it had secured a more cost-effective source of funding.

"Maybank Kim Eng would like to clarify that this was only a proposed bond issuance, which the company did not proceed with, as it had secured a more cost-effective source of funding,” Maybank Kim Eng Group said in an emailed reply to queries by the theedgemarkets.com earlier today.

Maybank Kim Eng Group did not elaborate.

The theedgemarkets.com’s queries today followed Fitch Ratings' note yesterday (April 7) that Fitch Ratings (Thailand) had withdrawn the national long-term rating of 'AA-(tha)' assigned on March 4, 2021 to Maybank Kim Eng Securities (Thailand) Pcl’s proposed baht subordinated notes.

"Fitch is withdrawing the rating on the proposed subordinated debt as the issuance has been cancelled,” Fitch analysts wrote in the note, without specifying reasons behind the cancellation.

According to Maybank’s website, Maybank Kim Eng Securities (Thailand) Plc is an indirect 83.5%-owned subsidiary of Maybank, which is Malaysia’s most valuable-listed group.

On Bursa Malaysia today, Maybank’s share price closed down 20 sen or 2.36% at RM8.28 for a market value of about RM93.07 billion.

Maybank has 11.24 billion issued shares, according to the group’s latest quarterly financial report.

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Maybank subsidiary cancelled bond issue, Fitch says as it withdraws baht-denominated notes rating