What is the listing criteria for Fixed Income securities?

Please refer to the table below for the listing criteria. 

 

Quantitative Criteria

  Private Market Public Market
Market Capitalisation¹

Minimum net assets requirement of at least USD5 million prior to listing

Minimum net assets requirement of at least USD10 million prior to listing

Financial Position & Liquidity

Minimum 1-year operating track record²

Minimum 3-years’ operating track record²

No negative going concern opinion by recognised independent auditors²

Cash Flow projection in alignment to the bond duration³

Min. Issuance Size

USD 5 million

USD 10 million

 

Qualitative Criteria

  Private Market Public Market

Type of Issuer

A corporate incorporated under laws of any recognised country or jurisdiction

Labuan Company; OR

Labuan Limited Partnership, Labuan Protected Cell Company, Labuan foundation or unit trust; OR

Corporation incorporated under laws of any recognised country or jurisdiction

Sponsorship

Not required

Fusang Exchange Limited approved Listing Sponsor required

Management Capability

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

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

Moratorium on Bonds

Not required

Transaction with Related Parties

Full disclosure of Directors, Senior Management, Companies transactions exceeding 20%

Listing Sponsor is required to report to the Exchange within 7 calendar days if Directors, Senior Management, Companies transactions exceeding 20%

Credit Rating⁴

Risk disclosure disclaimer is required for all size of issuance

Rate by at least ONE credit rating agency if the issuance size is greater than USD 100 million

Currency of Bond Issue

MYR is restricted

Additional Requirements for Bond Issuers

Post notification to LFSA by Fusang within 30 calendar days after the Private issuance

Submission of prospectus and LFSA approval is required prior issuance/ listing

Annual audited financial statements and valuation report preceding 1 year from the listing date²

Annual audited financial statements and valuation report preceding 3 year from the listing date by independent auditor²

Does not require paying agent

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 licensed trustee or custodian (service provider) that registered under any jurisdiction

MUST appoint a Labuan licensed trustee or custodian (service provider)

The utilisation of proceeds must be clearly illustrated in the prospectus.

N/A

MUST maintain a registered office in Labuan

Investment available to

Sophisticated Investors Only

Retail Investors⁵

Sophisticated Investors⁵

 

Notes:

¹ The prescribed conditions apply to the new issuer or guarantor only and shall be maintained until bond maturity.

² The prescribed conditions apply to the new issuer or guarantor only.

³ The prescribed conditions apply to the new issuer only.

⁴ A risk disclosure disclaimer (RDS) is required if no appointed credit rating agency.

⁵ Exclude Malaysian On-shore Investors upon Public Market Fixed Income Security issuance.