Borrower of the Week: CIMB

We talk to Dato'' Nazir Razak, Group Chief Executive of CIMB about the deal and the bank''s capital structure.

Why did you decide to do the bond issue

CIMB's capital base currently comprises almost entirely of common equity, that is Tier 1 capital. Therefore, the issuance of CIMB's Tier 2 sub-debt of $100 million formed an integral part of the firm's proposed capital swap exercise where RM380 million was to be raised in the form of Tier 2 capital to replace RM350 million of Tier 1 capital, which will be returned to CIMB Berhad's shareholders. This capital restructuring exercise is return-on-equity enhancing.

Raising USD denominated as opposed to Ringgit denominated is consistent with the funding requirements of our USD denominated assets.

Will there be...

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