PETALING JAYA: Corporate bonds rated by RAM Rating Services Bhd surged to RM133.6bil for calendar year 2007 from RM42.5bil a year earlier, bolstered by mergers and acquisitions and investment activities last year.
This translated into 87% of the domestic market's RM153.4bil worth of rated corporate bonds for the same period, the company said in a statement on Tuesday.
Among the sizeable debt facilities rated by the company in the fourth quarter of last year included Binariang GSM Sdn Bhd's RM19bil Islamic commercial papers/medium term notes programme and RM3bil cumulative non-convertible Islamic junior sukuk, Class Auto Receivables Bhd's RM10bil medium-term notes programme and RHB Bank Bhd's RM3bil medium-term notes programme.
RAM Ratings director Datuk C. Rajandram said that the Malaysian corporate bond market had increased in both depth and sophistication since 1991.
Last year marked another milestone in the development of the domestic capital market, with Cagamas SME Bhd's synthetic securitisation of SME loans. This is the first rated synthetic transaction in Malaysia, he said.
RAM Ratings said Islamic hybrids, i.e. Islamic debt instruments with equity-like features, also made their mark last year. In total, the company rated RM73.1bil of new sukuk issues in 2007.
In terms of RAM Ratings' league table for lead managers, CIMB Investment Bank Bhd again claimed pole positions in both conventional and sukuk issues for 2007.