What is the public listing criteria for Fixed Income?

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

Quantitative criteria:

  1. Market capitalization

    •  Minimum net assets requirement of at least USD10 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 3-years’ operating track record.*
    • Recognized Independent Auditors: No negative Going Concern opinion.*
    • Cash Flow projection in alignment to the bond duration.**
3.  Minimum issuance Size
    • USD10 million.

Qualitative criteria:


1. Type of Issuer

    • Labuan Company; or
    • Labuan Limited Partnership, Labuan Protected Cell Company, Labuan foundation or unit trust; or
    • Corporation incorporated under laws of any recognized country or jurisdiction.

 2. Sponsorship

    • Fusang Exchange Limited approved Listing Sponsors.

 3. Management capability

    • Management experience and capabilities on the average experience of 5 years in the relevant industry before the submission date.
    • Management personnel shall be a fit and proper person

 4. Moratorium on Bonds

    • Not required

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

    • Full disclosure of related parties’ transactions.
    • Listing Sponsors to notify the Exchange within 7 calendar days

6. Credit Rating

    • Rate by at least ONE credit rating agency if the issuance size is greater than USD100 million.
    • A risk disclosure disclaimer (RDS) is required if no appointed credit rating agency.

7. Currency of bond issue

    • MYR is restricted.

8.  Additional Requirements for bond issuers

    • Submission of prospectus and LFSA approval is required prior issuance/ listing
    • Annual audited financial statements and valuation report preceding 3 year from the listing date by independent auditor.*
    • MUST maintain a paying agent registered under LFSA until the date no debt is outstanding (unless the issuer is the paying agent).
    • MUST appoint a Labuan licensed trustee or custodian (service provider).
    • MUST maintain a registered office in Labuan.
    • The utilization of proceeds must be clearly illustrated in the prospectus.
9.  Type of Investors***

  

*   Applicable to new issuer or guarantor only

** Applicable to new issuer only

*** Exclude Malaysian On-shore Investors upon issuance