Wednesday May 16, 2012

RBS to focus on debt capital markets


KUALA LUMPUR: The Royal Bank of Scotland (RBS) intends to focus on the debt capital markets, in particular sukuk, over the next 12 months, said head of corporate coverage in Malaysia, Ho Weng Yew.

“In our pipeline right now, we are looking at at least four to six potential issuances, spread out over nine to 12 months,” he said at a briefing.

He added that the potential issuance would be of sizeable amount, coming from Central Asian and European countries through financial institutions and conglomerates from different kinds of sectors.

“In April last year, RBS led the Hong Leong Bank bond which was well oversubscribed with US$300mil,” Ho said.

Also, in the third quarter of last year, Khazanah Nasional Bhd, through RBS, issued the first Islamic CNH bond, which represents the offshore Chinese yuan market in Hong Kong.

A RBS sign is seen in central London. The bank says Malaysia’s fundamentals remain strong and solid. — AFP

Country executive, Malaysia, and head of international banking, Malaysia and Indonesia, Andrew Sill said as part of the bank's five-year strategy, its model was now simple and straightforward.

“We are going back to basics. We are offering traditional products and will be relationship-driven to suit the current economic situation,” he said.

Under the umbrella of markets and international banking, Sill said RBS would focus on its cash and trade lending business, interest rates and currency hedging, structure investment products, as well as traditional and convertible bonds.

On the upcoming general election, Sill said whatever the outcome, it won't have an impact on foreign investments as Malaysia's fundamentals were still strong and solid.

“Most important is stability. That's all that businessmen want so that they can continue with their business,” Ho said.

In an economic report released yesterday, RBS said: “We are moderating our stance on inflation. The combination of softening commodity prices and slowing growth should result in more moderate inflation conditions in most countries.”

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