Fitch welcomes BNM’s revised bond policy

MALAYSIA: Fitch Ratings welcomed new Bank Negara Malaysia policies to allow multilateral development banks (MDBs) and development financial institutions (DFIs) to issue local currency ringgit-denominated debt securities and provide ringgit financing in Malaysia. Fitch Managing Director and Global Head of Islamic Finance Bashar Al Natoor wrote the revision will increase market liquidity, making it easier for other issuers to raise funds. The move could attract a more diversified group of investors, including those with a preference for high-quality, investment-grade securities. Also, MDBs and DFIs can provide substantial financing for infrastructure and development projects, driving economic growth. “The streamlined application process for DFIs and the flexibility for MDBs highlights Malaysia’s commitment to creating an investor-friendly environment. The integration of MDBs and DFIs into the Malaysian sukuk and bond market not only enhances market credibility but also aligns Malaysia with global financial standards.”