What is the private listing criteria for fixed income?

Requirements to become an issuer on FUSANG Exchange Private Fixed Income Board

Quantitative criteria:

  1. Market capitalization

    •  Minimum net assets requirement of at least USD5 million prior to listing.*
    • The conditions prescribed under the first bullet point above shall be maintained until the bond maturity date.

2.    Financial position & liquidity

    • Minimum 1-year operating track record.*
    • Recognized Independent Auditors: No negative Going Concern opinion.*
    • Cash Flow projection in alignment to the bond duration.**

3.  Minimum issuance Size

    • USD 5 million.

Qualitative criteria:


1. Type of Issuer

    • A corporation incorporated under laws of any recognized country or jurisdiction.

     2. Management capability

      • Management experience and capabilities on the average experience of 5 years in the relevant industry before the submission date.

     3. Moratorium on Bonds

      • Not required

    4.  Transaction with Related Parties (Directors, Senior Management, Companies exceeding 20%)

      • Full disclosure of related parties’ transactions.

    5. Credit Rating

      • Risk disclosure disclaimer is required for all size of issuance.

    6. Currency of bond issue

      • MYR is restricted.

    7.  Additional Requirements for bond issuers

      • Post notification to LFSA by Fusang within 30 calendar days after the Private issuance
      • Annual audited financial statements and valuation report preceding 1 year from the listing date.*
      • Does not require paying agent.
      • MUST appoint a licensed trustee or custodian (service provider) that registered under any jurisdiction.
      • The utilization of proceeds must be clearly illustrated in the prospectus.

    8.  Type of Investors

      

    *   Applicable to new issuer or guarantor only

    ** Applicable to new issuer only