As testament of performance and track record, Maybank IB has consistently been recognized by RAM Rating Services Berhad for lead managing the most number of conventional and Islamic private debt securities. For 2008, RAM Rating Services Berhad ranked Maybank IB no.1 in their Lead Manager Awards by issue value. Maybank IB is also the recipient of international accolades and awards of distinction for most innovative Islamic sukuk issuance, groundbreaking structured finance transaction, as well as industry acknowledgement for outstanding contribution towards elevating the country’s repute in the global financial market.

Being the investment banking arm of Maybank Group, Maybank IB also possesses the distinct advantage of being able to leverage across groupwide capabilities to structure and deliver compelling financing solutions that achieve our client’s objectives.

Private Debt Securities (PDS) – Islamic and Conventional

Debt Markets has consistently been a leader in the market for PDS issuances. We have successfully structured Islamic and conventional financing instruments for our local and foreign clients. The Islamic PDS issuances are structured to ensure compliance with international Shariah standards and requirements to ensure liquidity and demand for the issuance, as well as to increase the breadth and depth of the local Islamic capital markets and develop the international Islamic markets.

Debt and Project Advisory

Debt Markets’ debt and project advisory team originates, advises on and executes unique financing structures that are based on risk assessment and mitigation in projects to achieve competitive gearing levels whilst maintaining strong and sustainable credit ratings. Our clients, comprising corporations in various industries like infrastructure, energy and utility sectors, benefit from the ability of the resulting structures that add value by increasing a project’s equity return while at the same time ensuring the bankability and marketability of the project.

Asset-Backed Securities (ABS)

The Debt Markets’ in-house ABS team develops asset-backed and mortgage-backed securitisation structures, synthetic securitisation, collateralized debt obligations and other structured ABS products. The team focuses in providing optimal ABS financing structures for our clients and providing professional, efficient and cost effective client services. Assets securitised include bank loans (term loans, mortgages, hire purchases and leases), bond obligations, credit card receivables, whole business features revenues, public utilities and government revenues.

The Cagamas SME Berhad’s multiple award-winning RM600 million Synthetic Securitisation of Small Medium Enterprise Loans originated by Maybank, was a breakthrough for the Malaysian capital market and financial system. It enabled Malaysia to position itself as a model for SME funding in Southeast Asia and further contributed to capital market development and diversification of funding sources, thus creating a new benchmark for the country.

Institutional Sales & Underwriting

The Debt Markets’ Institutional Sales team covers a wide range of corporate, government-related and institutional clientele and due to the strength of the relationships it fosters with investors, Maybank IB is able to competitively price issues that balance investors’ appetite against current economic conditions, whilst ensuring finer pricing levels for the issuer. The effective leveraging on the collective underwriting capability of the Maybank Group and well complemented with a strong distribution network ensures the successful subscription (and mostly over-subscription) of issues by a wide base of investors.

Ratings Advisory

The Debt Markets’ in-house Ratings Advisory team conducts preliminary rating assessment of potential clients as well as structures related financing proposals to secure rating enhancement. The team works closely with the rating agencies in ensuring that the target rating for potential clients can be achieved.

Loan Syndication

Our loan syndication team draws its strength from the ability to leverage on the expertise and funding strength of the Maybank Group. The experienced team seamlessly arranges and coordinates the overall syndication process and manages the funding transaction on behalf of the client. Our team creates and customizes financing solutions to meet the client’s business needs, both domestic and regional through various structures and products including project finance, trade finance, as well as refinancing and restructuring. Our structuring capability is supported by our ability to syndicate the financing through our established relationships with the various financial institutions.

 

Case Studies

Foreign Deals

	Republic of Indonesia Perusahaan Penerbit SBSN Indonesia I established in Indonesia under Law No.19 of 2008 on Sovereign Sukuk (Surat Berharga Syariah Negara) and Government Regulation No.67 of 2008 on the Establishment of Perusahaan Penerbit Surat Berharga Shariah Negara Indonesia I) In April 2009, Maybank IB was the International Co-Manager for the inaugural USD 650 million sovereign Sukuk issued by the Government of Indonesia. The trust certificates were issued on 23 April 2009 and are due in 2014. Rated Ba3 (Moody’s) / BB- (S&P) / BB (Fitch), the Sukuk reflect Indonesia’s sovereign credit rating and a combination of strong distribution networks and healthy investor demand ensured an oversubscription of the issue of seven (7) times.
	Malayan Banking Berhad Maybank IB lead arranged and lead managed on behalf of Malayan Banking Berhad, its SGD600 million Innovative Tier 1 Capital Securities (“IT1CS”) in July 2008, which received an overwhelming response from Singapore-based investors resulting in an over-subscription by more than 1.5 times of the initial issuance size of SGD500.0 million. The issuance was upsized to SGD600 million in view of the strong demand.
	Malayan Banking Berhad MBB Sukuk Inc Maybank IB jointly arranged and managed the 2007 issuance of Malayan Banking Berhad’s USD 300million Subordinated Sukuk, which saw an overseas roadshow being conducted in major financial hubs like Dubai, London and Singapore and an eventual overwhelming oversubscription of more than seven (7) times from international investors across Asia, the Middle East and Europe. Structured on a 10 non-call 5-year basis and offered outside of the United States in accordance with Regulation S, the ratings assigned were Baa1 (Moody’s) and BBB+ (Standard & Poor’s Rating Service). This landmark transaction achieved a number of benchmarks namely: - the world’s first Islamic US$ Subordinated Bank Capital Sukuk; the tightest pricing ever achieved on a US$ issue from Malaysia to-date; the second tightest pricing ever for a US$ sub-debt bank issue from Asia (ex-Japan); and the tightest pricing ever for a US$ Sukuk globally (excluding supranational issuers). The uniqueness and success of this deal translated into a number of international awards for Maybank IB, namely:- Euromoney Islamic Finance Award 2008 – Best Sukuk Deal Islamic Finance News – Best Country Deal Award (2007)
	Eskan RMBS Company BSC (C) In 2007, Maybank IB was mandated as Principal Advisor and Lead Manager by Bahrain-based Eskan Bank to arrange and launch the first Bahraini Dinar 30 million residential mortgage-backed securities (“RMBS”) transaction in Bahrain and the first RMBS that securitized social housing loans in the Gulf Cooperation Council (GCC). The RMBS bonds were 1.74 times oversubscribed by investors in Bahrain comprising financial institutions, insurance companies and government linked funds. This landmark transaction comprising key 3, 5, 7 and 10 year maturities helped to deepen the Bahraini capital markets in particular developing the benchmark yield curve.

 

Domestic Deals

Securitisation Deals

Cagamas SME Berhad Maybank IB was appointed to jointly lead arrange and manage on behalf of Cagamas SME Bhd (“Cagamas SME”), a wholly owned subsidiary of Malaysia’s national mortgage corporation, Cagamas Berhad, its inaugural securitisation of its Small Medium Enterprises (“SME”) loans amounting to RM600 million. Being the first synthetic securitisation transaction and the first securitisation of SME loans as an asset class, it set a new benchmark in the country. The securitisation of SME loans as an asset class was not only another milestone for Cagamas, it was also a breakthrough for the Malaysian capital market and financial system. This programme had set a new standard in the country, and at the same time positioned Malaysia as model for SME funding. The innovative and ground-breaking transaction garnered numerous international accolades, namely:- Thomson International Securitisation Report's (ISR) Asian Deal of the Year 2007 Award IFR Asia Malaysia Capital Markets Deal of the Year (2007) Award The Asset Magazine Deal of The Year – Best Domestic Securitisation (2007)

Financial Institutions

EON Bank Berhad "Following on from its success in bank capital raising, Maybank IB was mandated as the Joint Placement Agent for EON Bank Berhad’s RM2,000 million  Subordinated Medium Term Notes Programme, which was successfully emplaced in the market."

Power & Infrastructure Sector

Maybank-IBs Debt Markets team has a long standing track record and extensive experience in independent power producer (“IPP”) transactions. We command the single largest market share and are responsible for arranging > 36% of the IPP bonds (by value) in existence to-date.

Issuer/Sponsor	Year	Value (RM Mil)	Role
YTL Power International Berhad	2008	2,200	PA / LA & LM
Segari Energy Ventures	2006	930	PA / LA & LM
TNB-Investment Holding Co – Malakoff (Shoaiba, Saudi Arabia)	2005	USD1,765	Financial Adviser
Ranhill Powertron Sdn Bhd	2004	540	PA / LA & LM
Tanjung Bin Power Sdn Bhd	2003	5,600	JPA / JLA & JLM
YTL Power Generation Sdn Bhd	2003	1,300	JPA / JLA & JLM
Panglima Power Sdn Bhd	2003	550	Co-Arranger
Magna Segmen Sdn Bhd	2003	70	PA / LA & LM
Musteq Hydro Sdn Bhd	2003	108	PA / LA & LM
TSH Resources Bhd (Biomass Power Plant)	2002	40	PA / LA & LM
Tenaga Nasional Berhad	2001	2,000	PA / LA & LM
GB3 Sdn Bhd	2001	1,350	JPA / JLA & JLM
Genting Sanyen Power Sdn Bhd	2001	550	JPA / JLA & JLM

Note:	PA – Principal Adviser	JPA – Joint Principal Adviser
	LA – Lead Arranger	JLA – Joint Lead Arranger
	LM – Lead Manager	JLM – Joint Lead Manager

YTL Power International Berhad One of the more innovative power deals undertaken by Maybank IB involved the RM2.2 billion Redeemable Bonds issuance with up to 2,205 million detachable provisional rights to allotment of Warrants by YTL Power International in April 2008. With a rating of AA1, the issuance helped to inject liquidity into the capital markets and act as a benchmark for other AA1 primary issuances. In addition to boosting YTL Power’s corporate profile, the issuance also helped to provide a mechanism for reward to shareholders via the warrants issue.

Notable Refinancing Deals

Maybank IB has considerable experience in advising issuers on debt refinancing exercises which involve a higher level of specialist knowledge due to the market-sensitive nature of such proposals. The team provides issuers with in-depth market insights on investor appetite, pricing and buyback levels and interest rate conditions in order to ensure that the issuers’ debt financing costs are optimized. Notable refinancing deals executed by Maybank IB are:-

Issuer/Sponsor	Year	Value (RM Mil)	Role
Pinnacle Tower Sdn Bhd (wholly owned subsidiary of Sacofa Sdn Bhd)	2009	450	JPA / JLA & JLM
Lingkaran Trans Kota Sdn Bhd	2008	1,545	PA / LA & LM
Media Prima Berhad	2007	350	PA / LA & LM
Segari Energy Ventures Sdn Bhd	2006	930	PA / LA & LM
Kwantas SPV Sdn Bhd	2006	220	JPA / JLA & JLM
SAJ Holdings Sdn Bhd	2004	1,280	JPA / JLA & JLM

Note:	PA – Principal Adviser	JPA – Joint Principal Adviser
	LA – Lead Arranger	JLA – Joint Lead Arranger
	LM – Lead Manager	JLM – Joint Lead Manager

Lingkaran Trans Kota Sdn Bhd (“LITRAK”) Maybank IB was mandated as the Principal Advisor / Lead Arranger / Lead Manager for LITRAK’s RM1,545 million Sukuk Musyarakah Islamic Medium Term Notes and Islamic Commercial Papers Programme, which was the first successful refinancing exercise for a highway concession company in the Malaysian capital markets to date. The aim of the comprehensive refinancing exercise was to streamline all five (5) of LITRAK’s existing debt programmes under one internationally-recognized Syariah compliant structure to raise LITRAK’s profile amongst international investors and help LITRAK gain access to a wider pool of investors. Rating enhancements and cost efficiencies were also achieved by leveraging on LITRAK’s strong credit profile and effective negotiations on the buyback and new pricing for the Sukuk Musyarakah with the investors.

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