The Islamic Commercial Papers / Medium Term Notes Programme of up to RM300.0 million in nominal value (“ICP/IMTN Programme”) and Medium Term Notes Programme of up to RM500.0 million in nominal value (“IMTN Programme”) (collectively known as the “Programmes”) was lead arranged by Maybank IB for UMW and a signing ceremony was held at UMW’s office on the 23 June 2009.

In the current financial market situation, this maiden Islamic debt issuance is of tremendous significance, as it has been rated AAA and MARC-1 by Malaysian Rating Corporation (“MARC”), the highest credit rating possible, reflecting UMW’s robust financial strength and leadership position in the domestic automotive industry as well as strong businesses of automotive, equipment, manufacturing and engineering (M&E) and oil and gas.

The proceeds from the exercise will be utilised to fund its working capital, domestic as well as foreign existing and future projects, investments and capital expenditure and to refinance debt. It is anticipated that the Islamic debt securities will be well received by investors.

The Programmes have been structured based on the Islamic concept of Musyarakah. The tenure of the ICP/IMTN Programme will be for up to seven (7) years from the first date of issuance meanwhile the IMTN Programme will be for up to ten (10) years from the first date of issuance.

Signing on behalf of Maybank IB as the Principal Adviser and Lead Arranger for the Programmes, was the Chief Executive Officer, Encik Mohammed Rashdan bin Mohd Yusof, witnessed by the Head of Debt Markets, Mr. John Chong. UMW Holdings Berhad was represented by the President/Group CEO, Dato’ Abdul Halim bin Harun, and witnessed by Encik Meor Mohar Azhar bin Abd Ghani, the Executive Director of UMW Corporation Sdn Bhd.

In his speech, Encik Mohammed Rashdan bin Mohd Yusof said “UMW Holdings Berhad’s debut in the Islamic capital markets allows the UMW Group to diversify its sources of funding, giving it access to the huge liquidity pool of the Malaysian Islamic capital market, whilst lowering the cost of financing and allowing direct access to investors in the market place. The Islamic Debt Programmes themselves will provide unparalleled flexibility to UMW Group for the financing of its working capital, and various investments and projects around the globe”

Encik Mohammed Rashdan added that “UMW, has over the years successfully transformed itself into one of the largest locally-owned investment holding companies in Malaysia with presence in 13 countries and a market capitalization of RM6.38 billion.”