KUALA LUMPUR, Feb 8 — Finance Minister Lim Guan Eng has lead a high-powered delegation on a three-day investor roadshow in Japan ahead of the issuance of the RM7.4 billion Samurai bond to Malaysia by the Japanese government.
In a statement today, the Finance Ministry said the roadshow which started on February 6, was to promote Malaysia as a stable and high-potential investment destination.
It was also aimed at giving the international investing community confidence to take part in the forthcoming Samurai Bond issuance valued at 200 billion Yen (RM7.42 billion) and guaranteed by the Japan Bank Investment Corporation (JPIC).
Lim said in the statement that international investors were confident in Malaysia’s economic potential as well as the current Government’s ability to drive the nation’s economy forward.
“Malaysia continues to be regarded as an attractive investment destination by investors. What more with the Government’s commitment to the Competency, Accountability, and Transparency (CAT) principles in its governance under the leadership of Prime Minister, Tun Dr Mahathir bin Mohamad, an international statesman well-known and much respected in Japan,” Lim said, adding that the Japanese investors are also confident that their investments will be used to grow Malaysia’s economy to the fullest.
The roadshow involved 20 participants, including the Treasury Secretary-General, Datuk Ahmad Badri bin Mohd Zahir, Treasury Deputy Secretary-General, Datuk Siti Zauyah Md Desa, and Assistant Governor of Bank Negara Malaysia (BNM), Marzunisham Omar.
The Finance Ministry said that the the roadshow was organised by Daiwa Markets Limited (in collaboration with Affin Hwang Investment Berhad), HSBC Bank Malaysia Berhad, and Mizuho Bank (Malaysia) Berhad, as co-lead arrangers appointed by the Finance Ministry, for the purpose of the bond’s issuance.
In November last year, national newswire Bernama quoted Dr Mahathir Mohamad saying that the Japanese government is not putting any condition in its offer to guarantee the issuance of the Samurai bond to Malaysia.
Dr Mahathir was reportedly asked as to whether there were any conditions laid out by the Japanese government, for example in exchange for Japanese companies to get involved in mega infrastructure projects in Malaysia, when making the offer.
The Langkawi MP was quoted saying that the yen-denominated loan would be used to repay the country’s existing loans or to be spent for development projects.
Bernama reported that the Samurai bond has a 10-year tenure, and is expected to be issued before March this year, via Japan Bank of International Cooperation at an indicative coupon of 0.65 per cent.
