Kuala Lumpur: CIMB today launched four callable bull certificates on AirAsia Berhad (“AirAsia CBLC”), Gamuda Berhad (“Gamuda CBLC”), Genting Berhad (“Genting CBLC”) and Berjaya Corporation Berhad (“BJCORP CBLC”).  

CIMB Bank is the first issuer to list callable bull certificates on Bursa Malaysia following the issuance of the listing requirements of callable bull/bear certificates (“CBBC”) by Bursa Malaysia on 31 May 2010. The four callable bull certificates will commence trading on 16 July 2010.

“Malaysia is the first country in Southeast Asia to introduce CBBC. This marks yet another first for our capital market and Bursa Malaysia and demonstrates the pro-market vision and policies of the Securities Commission and Bursa Malaysia. CIMB Bank is proud to be the first issuer to launch and list CBBC,” said Dato’ Charon Wardini Mokhzani, Deputy CEO, Corporate and Investment Banking, CIMB Group in his speech.

CBBC are financial instruments that track the performance of an underlying instrument without requiring investors to pay the full price of the underlying instrument. Unlike call or put warrants, CBBC have a feature known as mandatory call event or MCE where the issuer will call the CBBC when the price of the underlying instrument reaches the call price at any time prior to the expiry date. When this happens, the CBBC will be suspended from trading and expire early.

The call prices of AirAsia CBLC, Gamuda CBLC, Genting CBLC and BJCORP CBLC are RM1.05, RM2.70, RM6.15 and RM1.06 respectively.

“Our launch of CBBC today is yet another example of innovation in exchange-traded products, designed to give investors more choice. It is not a substitute but a complement to all the other exchange-traded products we have,” Dato’ Charon added.

CIMB Bank has been the leading issuer of structured warrants since the liberalisation of the structured warrants guidelines by the Securities Commission in 2006.  At present, CIMB Bank accounts for more than 50% of the total structured warrants listed on Bursa Malaysia.

For more information on CBBC, please refer to the product information on www.cimb.com/warrants.