Toyota Capital to raise RM2.5b conventional, Islamic bonds

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KUALA LUMPUR: Toyota Capital Malaysia Sdn Bhd will raise up to RM2.5 billion through conventional and Islamic bonds (sukuk) to help fund its midterm expansions in both conventional and Islamic automotive finance for Toyota and Lexus vehicle customers in Malaysia.

Toyota Capital Malaysia yesterday signed agreements with CIMB Investment Bank Bhd (CIMB IB) and Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd (BTMU Malaysia) to set up the conventional and sukuk programmes guaranteed by Toyota Motor Finance (Netherlands) BV.

CIMB IB and BTMU Malaysia are the joint principal advisers, joint lead arrangers, joint lead managers, and joint book runners for the notes and sukuk programmes.

"The establishment of both notes programmes and sukuk programmes is the largest to date for a Japanese corporate in Malaysia. This landmark transaction is reflective of the continued interest of Japanese corporates in Malaysia to tap the debt capital markets as an alternative source of funding," said Toyota Capital Malaysia, CIMB IB and BTMU Malaysia in a joint statement.

The tenure of the programmes ranges from seven years to 15 years, from the date of the first issue.

 

This article first appeared in The Edge Financial Daily, on June 24, 2015.