CGS’s commercial paper second tranche oversubscribed

KUALA LUMPUR: CGS International Securities Malaysia Sdn Bhd (CGS MY) concluded the second tranche of its RM1 billion Commercial Papers Programme (CPP) totalling RM400 million. The second tranche of its CPP, which will mature on June 4, 2024 offers a 4.1% per annum interest over three months. The success of this issuance demonstrates strong investor confidence in the company and its CPP.

“We are encouraged by the continued strong support and reception towards our maiden CPP. The second tranche saw existing as well as new investors coming on. In addition, the second tranche was oversubscribed, allowing us to issue a higher amount of RM400 million compared to the first tranche’s RM300 million, and at a lower discount rate. This reflects increasing investor familiarity with the CGS MY brand in the capital markets,” said Alan Inn, deputy CEO, CGS MY.

This second issuance comes on the back of CGS MY’s issuance of its maiden RM300 million tranche on Dec 22, 2023, which offered a 4.3% per annum interest over a three-month period. The first tranche will mature on March 22, 2024. Both commercial papers (CPs) can be redeemed at their full nominal value upon maturity. CGS MY and its related corporations and/or associated companies plan to use the proceeds from the issuance for the company’s general working capital purposes, including refinancing of any existing and/or near-term obligations and future borrowings.

On Nov 8, 2023, CGS MY established a CPP to issue short-term CPs with typical issue tenures of 1, 3 and 6 months, or such other tenures of up to 364 days. The CPP provides financial and funding flexibilities for CGS MY and broadens its funding base to include short-term fixed income investors.