Two groundbreaking first-time deals closed during 2002 in Malaysia's domestic ABS market, including the country's first primary CLO - an RM2 billion (US$0.5 million) transaction involving 25 obligors. The second deal represented the first CMBS in Malaysia, an RM450 million (US$118.4 million) deal sponsored by Sunway City Berhad, and lead-managed by Deutsche Bank.
Malaysia seems to be reviving with a new CMBS issue for Sunway Holdings, which would be the second time that this company has tapped the ABS market. Deutsche Bank again is arranging the transaction. Sunway Holdings released details of its proposed fund raising exercise in a press release - the company proposes to issue ABS notes through ABS Land & Properties Berhard, a bankruptcy remote special purpose vehicle. The notes issued would amount to approximately RM240 million (US$63.11 million). Aside from the ABS transaction, there is also the intention of issuance of up to RM350 million (US$92.09) in five-year unsecured bonds.
Sunway hopes that by the end of 2003 it will have completed this round of funding.