Toyota Capital inks RM2.5b fundraising programme

KUALA LUMPUR: CIMB Investment Bank Bhd and Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd (BTMU Malaysia) yesterday signed programme agreements with Toyota Capital Malaysia Sdn Bhd for the establishment of conventional and Islamic fundraising programmes of up to RM2.5 billion.
This includes a commercial papers (CP) programme and a medium term notes (MTN) programme together with an Islamic commercial paper (ICP) programme and an Islamic medium term notes (IMTN) programme based on the syariah principle of musharakah, guaranteed by Toyota Motor Finance (Netherlands) B.V.
The principal activities of Toyota Capital Malaysia are the provision of lease and hire purchase financing services.
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 Bhd is the syariah adviser for the sukuk programmes.
Both programmes are the largest to-date for a Japanese corporate in Malaysia.
This 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 Bhd, a long term rating of AAA(s)/Stable for the MTN and IMTN programmes, and short term rating of P1(s)/Stable for the CP and ICP programmes.
The tenure of the CP and ICP programmes is up to seven years from the date of the first issuance whilst the MTN and IMTN programmes have tenure of up to 15 years from the date of the first issue, respectively.
"This transaction provided another opportunity for us to structure customised and high value adding capital market solutions for Toyota Capital Malaysia, our long-standing and valued client," said CIMB group CEO Tengku Datuk Zafrul Tengku Abdul Aziz.