23 June 2015
Kuala Lumpur: Toyota Capital Malaysia Sdn Bhd (“Toyota Capital Malaysia”) today signed the Programme Agreements with CIMB Investment Bank Berhad (“CIMB Investment Bank”) and Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad (“BTMU Malaysia”) for the establishment of a Commercial Papers Programme (“CP Programme”) and a Medium Term Notes Programme (“MTN Programme”) (collectively referred to as “Notes Programmes”) together with an Islamic Commercial Paper Programme (“ICP Programme”) and an Islamic Medium Term Notes Programme (“IMTN Programme”) based on the Shariah principle of Musharakah (collectively referred to as the “Sukuk Programmes”), with a combined aggregate limit of up to RM2.5 billion in nominal value and guaranteed by Toyota Motor Finance (Netherlands) B.V.
CIMB Investment Bank and BTMU Malaysia together are the Joint Principal Advisers, Joint Lead Arrangers, Joint Lead Managers and Joint Bookrunners for the Notes Programmes and Sukuk Programmes. CIMB Islamic Bank Berhad is the Shariah Adviser for the Sukuk Programmes.
The Programme Agreements for the Notes Programmes and the Sukuk Programmes were signed between Mr Kuah Kock Heng, President, Toyota Capital Malaysia, Dato’ Kong Sooi Lin, Deputy Chief Executive Officer, CIMB Investment Bank and Mr Mikiyasu Yuasa, Executive Vice President, BTMU Malaysia. It will be witnessed by Tengku Dato’ Zafrul Tengku Abdul Aziz, Group CEO, CIMB Group and Mr Naoki Nishida, President and CEO, BTMU Malaysia.
The establishment of both Notes Programmes and Sukuk Programmes is the largest to-date for a Japanese corporate in Malaysia. This landmark transaction is reflective of the continued interest by Japanese corporates in Malaysia to tap the debt capital markets as an alternative source of funding. Furthermore, the Notes Programmes and Sukuk Programmes provide Toyota Capital Malaysia the funding flexibility to address both its short term and long term, as well as Islamic and conventional funding requirements.
Toyota Capital Malaysia has been accorded by RAM Ratings Services Berhad, a long term rating of AAA(s)/Stable for the MTN Programme and the IMTN Programme, and short term rating of P1(s)/Stable for the CP Programme and ICP Programme. The tenure of the CP Programme and ICP Programme is up to seven years from the date of the first issuance whilst the MTN Programme and the IMTN Programme have tenure of up to 15 years from the date of the first issue, respectively.
“We are delighted to have CIMB and BTMU as our core banking partners, and value their expertise and strong execution capabilities in the debt capital markets. These new programmes will further strengthen the funding structure of Toyota Capital Malaysia to meet its mid-term expansions in both conventional and Islamic Auto Finance for Toyota and Lexus customers in Malaysia,” said Mr Kuah Kock Heng, President of Toyota Capital Malaysia.
“CIMB and BTMU are once again pleased to work closely with Toyota Capital Malaysia in addressing their funding requirements with the establishment of the Notes Programmes and Sukuk Programmes. This landmark transaction provided another opportunity for us to structure customized and high value adding capital market solutions for Toyota Capital Malaysia, our long-standing and valued client,” said Tengku Dato’ Zafrul.
“These transactions mark another successful collaboration between BTMU Malaysia, who has a proven track record of assisting Japanese corporations to tap the Malaysian debt capital markets, and CIMB Investment Bank, our strategic partner and one of the key players in the Malaysian debt capital markets with an extensive distribution network,” said Mr Naoki Nishida, President and CEO, BTMU Malaysia.