KOTA KINABALU: Commerce International Merchant Bankers Bhd (CIMB) plans to open an investment bank branch here in September and four or five more commercial bank branches in Sabah within the next 12 months, said group chief executive officer Datuk Nazir Razak.
“We want to further expand our presence here, we are bullish about Sabah,” he said after an appreciation ceremony to mark the successful issuance of Sabah Development Bank Bhd's RM500mil bonds where CIMB acted as the lead arranger and lead manager of the fund-raising exercise which was completed this month.
The opening of the investment banking operation here was meant for large corporations and “high net worth individuals” in the state, he added.
At present, CIMB Group had 14 branches throughout Sabah under Bumiputra-Commerce Bank Bhd and Southern Bank Bhd, Nazir said.
After the takeover of Southern Bank, CIMB was in the process of transforming and reconfiguring the existing branches under a new brand name CIMB Bank, he said.
On the issuance of the bonds, Nazir said the response was extremely good with 38 accounts registered, with local investors taking up 85% and the rest by international fund managers.
“Despite the volatile market conditions, the bonds issuance went well and gained a good subscription rate of 2.3 times within a three-day period,” he said.
The bonds issued by Sabah Development Bank, a wholly-owned bank of the state government, were to raise funds to finance development projects such as expansion of the Kota Kinabalu International Airport, the Palm Oil Industrial Cluster and upgrading works of the railway network. – Bernama