THE Labuan International Financial Exchange (LFX) has achieved a market capitalisation of US$2.26bil (RM8.59bil) with the latest secondary listing of US$300mil of exchangeable notes by Genting Bhd.
Other Malaysian corporations that have listed their non-ringgit financial instruments on the LFX, either directly or through their subsidiaries, include Rashid Hussain Bhd, Tenaga Nasional Bhd, Kumpulan Guthrie Bhd and 1st Silicon (Malaysia) Sdn Bhd.
To date, there are 13 instruments listed on the LFX, comprising three Syariah-compliant certificates (Sukuk), six investment funds and four conventional debt instruments and exchangeable bonds.
Malaysian companies should continue to tap the opportunities offered by the LFX in meeting their capital needs, said LFX chairman Datuk Mohd Azlan Hashim.
“Such a move would also contribute to enhancing the profile of Malaysian corporations and financial instruments internationally,” he said in a statement.
This would be a significant step forward in contributing to the international branding of Malaysian corporations, financial products and services, he added.
Genting’s US$300mil 1% guaranteed exchangeable notes, due in 2008, were issued by Labuan-incorporated Prime Venture (Labuan) Ltd (PVL), a wholly-owned subsidiary of the group.
The notes, which were primary listed on the Luxembourg Stock Exchange on Dec 12, 2003, are exchangeable into ordinary shares of 50 sen each in Resorts World held by Genting, and are fully guaranteed by the group.
Bearing an interest rate coupon of 1% per annum, interest will be payable semi-annually in arrears on June 12 and Dec 12 of each year, commencing on June 12, 2004.
Each US$10,000 principal amount of the notes are exchangeable into 2,849.644 shares of Resorts World based on the exchange price of RM13.335 per share.