14. ABS can be issued with assets purchased from residents or non-residents by special purposes vehicles (SPVs) which are residents or non-residents. As exchange control rules cover payments between residents and non-residents, what are some situations in which SPVs are freely allowed under exchange control rules to issue ABS.
The situations are as follows:
 
 
Permitted ABS structure
Remarks
1 Sale of ringgit assets in ringgit by resident originators and issuance of ringgit ABS by resident SPVs. The issuance of ABS by the resident SPVs are subject to compliance with the Exchange Control Guidelines on Private Debt Securities For Lead Arrangers
2 Sale of foreign assets by non-resident originators, the issuance of foreign currency securities by non-resident SPVs (including those in Labuan) and the purchase of such securities by non-residents. The transactions are not under Exchange Control purview

All other situations would require the prior approval of the Controller.
 
 

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.

 
 

 
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