Bursa Malaysia and RAM have just entered into a shareholders’ agreement (SHA) to develop a new debt fundraising platform that will facilitate listed and unlisted small to mid-sized companies tapping into a new pool of capital outside of traditional wholesale markets, offering a new avenue and greater flexibility to these companies looking to raise funds.
The platform provides for a ‘bond-like’ experience allowing investors to invest in investment notes with credit and ESG ratings as easily as they would invest in shares in a transparent and regulated market, facilitating informed investment decisions.
Pursuant to the terms of the SHA, the joint venture shall be carried out through a new company (Newco) to be incorporated under the Companies Act 2016, whereby Bursa Malaysia will hold a 51% equity interest and RAM will hold the remaining 49%.
Newco will submit an application for registration under the Securities Commission’s revised Guidelines on Recognized Markets (RMO) which was recently issued on 15 November 2022.
“This agreement marks a significant milestone in our journey to become a multi-asset exchange. Our collaboration with RAM will broaden fund raising avenues for both our PLCs and unlisted entities – specifically enabling better access to both conventional and Shariah investment notes,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
“At the same time, we would also be able to provide new fixed income investment opportunities to both retail and sophisticated investors,” Datuk Muhamad Umar Swift added.
“This will further create an alternative fund-raising avenue for businesses which are currently underserved in this challenging environment and that are not yet ready to list on the Exchange,” he remarked.
“To enhance transparency in the ecosystem of debt-based financing and investments, RAM will contribute our expertise in credit ratings, ESG ratings and fixed income pricing,” said Chris Lee, Group CEO and Executive Director of RAM.
