KUALA LUMPUR, July 5 (Bernama) — AmInvestment Bank led Cagamas Berhad’s inaugural Malaysia Overnight Rate (MYOR) based Floating Rate Note (FRN) issuance as the sole lead manager. This is the nation’s first FRN referencing the MYOR, which was introduced by Bank Negara Malaysia in September 2021 as an alternative to the Kuala Lumpur Interbank Offered Rate (KLIBOR).
The landmark transaction for a notional value of RM200 million sets a new footprint for further market development towards adopting MYOR as the preferred benchmark for Ringgit floating rate capital market transaction. The MYOR FRN’s coupon will be determined prior to each coupon payment date based on the daily MYOR rate during the interest accrual period, as opposed to a KLIBOR based FRN where coupon is determined at the start of each interest accrual period.
