12. Must any ABS issued be denominated in Malaysian Ringgit or can the ABS be issued to foreign investors in a foreign currency denomination?

There are no restrictions in the ABS Guidelines on the issuance of foreign currency denominated bonds. In addition, such foreign currency denominated bonds would also be entitled to rely on Practice Note 1 issued under the PDS Guidelines which dis-applies, varies or clarifies the application of the PDS Guidelines in relation to the offer, issue or invitation of foreign currency denominated private debt securities of a Malaysian public company made exclusively to persons outside of Malaysia.

However, such funds raised must comply with any requirements and regulations as may be issued by the Controller of Foreign Exchange from time to time.

Remark: A Bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.