|
TOYOTA Motor Corporation
plans to sell RM1 billion of Islamic bonds and use the funds for capital
requirements and financing customers' purchase of Toyota cars.
This will be the first time the group will be issuing Islamic bonds.
UMW Toyota Capital Sdn Bhd (UMWTC),
a subsidiary of Toyota Financial Services Corporation (TFSC), the finance
and insurance umbrella of Toyota Motor Corporation, will issue the bonds. It
will issue commercial paper and medium-term notes (MTNs) bonds with
maturities of up to seven years. The first issue is expected to be completed
in June this year, it said in a statement released yesterday. UMWTC's chief
executive officer, Lim Chin Teong, said that the Islamic programme will fund
its growing Islamic loan assets and diversify its funding sources. It will
also enable UMWTC to tap both the short-term and long-term Islamic funding
sources in a cost-effective and expeditious manner, he said.
The financing exercise is consistent with UMWTC's push to develop the
Islamic financial services market with innovative Islamic vehicle financing
plans. Currently, the company offers two types of Islamic financing plans,
the Al Ijarah Thumma Al Bai' (AITAB) and Toyota Drive. CIMB Investment Bank
Bhd and Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd will advise, arrange and
manage the Islamic programme. CIMB Islamic Bank Bhd is the syariah adviser.
"UMWTC will be the first company in TFSC to issue Islamic debt papers," the
statement says. The Islamic programme is unconditionally guaranteed by
Toyota Motor Finance (Netherlands) BV, an internationally "AAA-" rated
company. The programme received superior ratings from RAM Rating Services
Bhd with the commercial paper accorded rating of "P-1", while the MTNs were
rated "AAA". UMWTC is a non-resident controlled company since 70 per cent of
its shareholding is held by TFSC.
|
