Kuala Lumpur, Friday, 29 April, 2005
World Bank to issue its First Ringgit Islamic Bonds
The International Bank for Reconstruction and Development, also known as the World Bank, has priced its RM760 million Islamic debt securities. This bond issue is the World Bank’s first Islamic debt issue, and is the largest Malaysian Ringgit issuance by a supranational organization to date. The bonds, structured under the Syariah principle of Bai Bithaman Ajil, will be known as the World Bank Wawasan bonds.
The securities have received indicative credit ratings of AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The Joint Lead Managers for this transaction are ABN AMRO and Commerce International Merchant Bankers Berhad.
The World Bank is an international organization established in 1945 and is owned by 184 member countries, including Malaysia. The World Bank’s main goals are promoting sustainable economic development and reducing poverty.
The book building process commenced on Wednesday, 27 April, 2005 and closed this morning, 29 April, 2005. The issue was 1.9 times oversubscribed and was priced at a profit rate per annum of 3.58% payable semi-annually. The Joint Lead Managers commented that demand for the issue was very strong, and bids were submitted by a diverse group of investors.
“We are very pleased with the results of the bookbuilding and the pricing of our debut Ringgit issue. With the increasing depth of the Malaysian capital markets, we hope to maintain a presence in this market in the future,” said Hiro Tsubota, Principal Financial Officer of the World Bank.
Jeremy Oliver, Malaysia Country Representative of ABN AMRO, said: “We are delighted to have teamed up with CIMB as joint lead managers for this landmark transaction and are proud to have worked with the World Bank for their highly successful inaugural Islamic Debt issue.”
Dato’ Nazir Razak, Group Chief Executive of CIMB Berhad, further added: “CIMB is honored to serve the World Bank together with ABN AMRO in this transaction. This issue reflects the World Bank’s confidence in the Malaysian capital market, in particular the Islamic market. The World Bank Wawasan Bonds shall contribute to the broadening of the domestic bond market by adding diversity to the top end of the credit league.”
- - -
ABN AMRO - Lim Li Koon +65 6231 8465
CIMB - Tengku Zarina +603 2084 8950
Notes to Editors
About ABN AMRO
Netherlands-based ABN AMRO is a leading international bank with total assets of EUR 608.6 bln (as at 31 December 2004). It has over 3,000 branches in more than 60 countries and territories, and has a staff of about 100,000 full-time equivalents worldwide. ABN AMRO is listed on the Euronext and New York stock exchanges.
More information on the group can be found at www.abnamro.com and on Wholesale Clients, at www.abnamro.com/wholesale
CIMB is a fully integrated investment bank, offering the full range of services in debt, equity and corporate advisory. CIMB also provides services in fund management, lending, private banking, private equity, Islamic capital markets as well as research economics and the equity and debt markets. CIMB is listed on Bursa Malaysia. With a market capitalization of RM 4.6 billion (USD 1.3 billion) as of 31 December 2004, CIMB is South East Asia’s largest investment bank.