Sabah enjoying robust economic development: CM
This is proven from successful issuances of many capital market
KOTA KINABALU:
The successful issuances of many capital market by credible local companies shows Sabah is enjoying a robust economic development driven by a strong and stable business environment, said Chief Minister Datuk Seri Musa Aman. Musa pointed out that many capital market issuances had successfully been completed by Sabahan companies in recent years as the State continued to produce numerous mature and sophisticated home-grown businesses. “In 2006, we saw the issuance of RM500 million bonds by Sabah Development Bank (SDB), which was its third private debt securities issuance. “In 2007, Sabah Ports instituted a RM150 million Islamic programme whilst Sabah Credit Corporation had put in place a RM500 million Commercial Papers/Medium Term Notes (CP/MTN) programme. “Later in the year, Hap Seng Plantation Berhad was successfully listed on the Main Board of Bursa Securities, to date the largest Sabah-based listed plantation company with a market capitalization of over RM2. 2 billion,” he said at the signing ceremony between AmInvestment Bank and CIMB Bank in relation to the launching of SDB Commercial Paper (CP) and Medium Term Notes (MTN) Programme to finance and support development activities in Sabah for the next 20 years. Thanks to the open and investor- friendly business environment in Sabah, Musa said many local and home-based companies had flourished in their respective business undertakings and had developed themselves to be active players not only in the local market place but also in the international arena. Musa said he was confident that the State would continue to have a stable and conducive economic climate to allow for more business and investment growth. He said Sabah has both political and economical vibrancy and stability, which are the essential aspects needed for pacing rapid development and creating a conducive investment environment. The implementation of the Sabah Development Corridor (SDC), he added, will excitingly bring sustainable growth and wealth to the Sabahan people and the State Government would ensure this will happen by providing the facilities required to catalyze both physical and economic growth. Amlnvestment and CIMB are the joint lead arrangers and joint principal advisers for the RM500 million Nominal Value CP programme and RM1 billion Nominal Value MTN programme. Speaking to reporters after the ceremony, Musa said launching o the SDB debt programme not only augurs well for SDB itself but also the overall development of the State. “We are very happy and thankfu that our partners — Amlnvestment Bank and CIMB Investment Bank are very supportive of our effort t further develop the State by signing this agreement with SDB today. The fund will be channelled into some of our development activities and help continue the programmes that we have planned. “SDB is our vehicle to develop our State as they will be playing important role in the financial aspect of the development activities in Sabah. They are doing well as shown by the P1 and AA1 rating given to them by the RAM Rating and are confident of positive and continuing growth,” he said. He added the agreement would help facilitate the realization of the State’s holistic development vision through its SDC which emphasises on equitable development for all of Sabah. As a development financial institution in Sabah, SDB has been an important catalyst for the State’s economic development, playing the crucial role of financial intermediary since its inception in 1977. The bank functions as a disbursement arm for the State’s socio-economic development projects and provides financial and investment advisory advices to the State Government and its agencies. Meanwhile, SDB Chairman Peter Siau Wui Kee said the bank would use the proceeds from the issuance of its commercial papers/medium-term notes (CP/MTN) programmes to help support the development activities in the State for the next 20 years. He said the RM500 million CP and RM1 billion MTN would also be used to refinance its existing borrowings and to fund its working capital requirements. Amlnvestment Bank Bhd and CIMB Investment Bank Bhd are jointly lead arrangers and joint principal advisers. Siau signed for the SDB while AMMB Holdings Bhd Deputy Chairman Datuk Azlan Hashin and CIMB Investment Bank Bhd Deputy Chief Executive Charon Wardini Mokhzani for their respective companies at the ceremony, witnessed by Musa.
