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The zero coupon unsecured guaranteed exchangeable bonds were issued by IOI Investment (Labuan) Berhad, a wholly owned subsidiary of IOI Corporation Berhad.
With today’s listing, there are now 20 instruments listed on LFX, comprising five (5) Syariah compliant certificates (Sukuk), five (5) investment funds and 10 conventional debt instruments and exchangeable bonds, with a total market capitalization of USD8.66 billion.
LFX Board Member and Chief Executive Officer of Bursa Malaysia, the holding company of LFX, Yusli Mohamed Yusoff said that being the first primary listing of exchangeable bonds on LFX, the new listing expands the diversity of the range of financial instruments on the Exchange.
"The primary listing of the exchangeable bonds further reflects the increasing acceptance of LFX as a premier offshore exchange by Malaysian corporations issuing foreign currency bonds."
The IOI Investment (Labuan) bonds, which are due in 2009, are exchangeable into new ordinary shares of IOI Corporation Berhad and are fully guaranteed by IOI Corporation Berhad.
The Listing Sponsor for the listing on LFX is AmInternational (L) Limited. Licensed by the LFX, a listing sponsor is primarily responsible to arrange for the listing of instruments on the LFX and for any subsequent post listing obligations arising.
According to AmInternational (L) Limited, the exercise involved a firm issue of USD310 million and a green-shoe option for up to a further USD35 million of exchangeable bonds. It noted that the proceeds of the issue would be used to repay bank borrowings, capital expenditure and investment opportunities, working capital and the construction of a new palm oil refinery in Rotterdam, the Netherlands.
AmMerchant Bank Berhad and UBS AG are the joint global coordinators and joint book-runners for the transaction which was oversubscribed by investors from the US, Europe and Asia.
As a web-based Exchange at www.lfx.com.my, LFX offers market participants and investors around the world, fast and efficient access to its services. Wholly owned by Bursa Malaysia Berhad, LFX is an international offshore financial exchange that facilitates the listing of a multitude of multi-currency instruments and allows the Issuer the flexibility to structure the instruments that best suit their funding needs.
