Guan Eng confident RM7.4 bil samurai bonds will woo international investors

Finance Minister Lim Guan Eng (centre) is heading a trade investment roadshow to Japan.

PETALING JAYA: Finance Minister Lim Guan Eng today said his three-day investment roadshow to Japan is also aimed at giving the international investing community confidence to take part in the forthcoming issuance of 200 billion yen (RM7.4 billion) in samurai bonds, guaranteed by the Japan Bank Investment Corporation (JPIC).

Malaysia continues to be regarded as an attractive investment destination by investors, he said in a statement today.

The roadshow was organised by Daiwa Markets Limited, in collaboration with Affin Hwang Investment Berhad, HSBC Bank Malaysia Berhad and Mizuho Bank (Malaysia) Berhad, acting as co-lead arrangers for the bond’s issuance.

Lim met Japanese Deputy Prime Minister Taro Aso, who is also finance minister, and adviser to the prime minister Shinya Izumi, who is also chairman of the National Public Safety Commission.

He conveyed the Malaysian government’s appreciation for the Japanese government’s willingness to guarantee the samurai bonds via JBIC to reduce the interest cost of the loan.

The Japanese government not only facilitated the bond’s issuance in a short span of time but also opened up potential trade opportunities in other areas, he added.

Lim said the meetings also discussed future directions in the relationship between the two countries, and opportunities to increase collaboration and investment in various strategic areas.

Lim’s roadshow includes Treasury secretary-general Ahmad Badri Mohd Zahir, his deputy Siti Zauyah Md Desa, and assistant Bank Negara Malaysia governor Marzunisham Omar.

Lim said the government’s commitment to the “competency, accountability and transparency” (CAT) principles and the Look East policy of Prime Minister Dr Mahathir Mohamad were plus points for Japanese investors.

“They are confident that their investments will be used to grow Malaysia’s economy to the fullest,” he said.

Lim said international investors also had confidence in Malaysia’s economic potential as well as the current government’s ability to drive the nation’s economy forward.

“The long-held close relationship and cooperation between the two governments is expected to develop further through this trip,” Lim added.