AMMB Holdings Bhd overtook CIMB Group Holdings Bhd as the top underwriter for Malaysian sukuk this year after being the sole arranger of 2013’s biggest deal. The lender’s market share rose to 26% after managing RM5.1bn of bond offerings including power producer Tenaga Nasional’s RM2bn sukuk, data compiled by Bloomberg show. CIMB, which led the rankings for the past six years, oversaw RM3.5 bn, giving it an 18% slice of the RM19.9 bn total.
- AMMB took up the entire Tenaga issue under a bought deal, where the arranger shoulders the risk of selling all the debt, demonstrating confidence in pent-up demand from Shariah-compliant investors after issuance trailed last year’s record. Sales will pick up in the second half because RM211bn of projects in the government’s 10-year development plan will need financing, according to AmInvestment Bank Bhd.
- "We believe there are still a lot of sukuk financing opportunities in this country given the amount of infrastructure projects," Datuk Mohd Effendi Abdullah, the head of Islamic markets at AmInvestment Bank, a unit of AMMB, said in an interview yesterday in Kuala Lumpur. "Our focus will be in Malaysia." (BT)