Edited by: Sheera Abg Mansor
KUALA LUMPUR: The pricing for a Panda Bonds issuance by Malaysia is still not attractive.
Finance Minister Lim Guan Eng as quoted in New Straits Times said talks on the potential issuance were ongoing, adding that the government needed to get the right bond rate before deciding on how much to be raised.
Lim reported that while China’s economy was facing tightening liquidity, there was still a possibility to negotiate a low coupon rate in the Chinese capital market.
So, Malaysia according to Lim, is seeking to borrow money, on a long-term basis, to reduce some of the government’s high-interest debt servicing burden and finance projects with reasonable returns.
Lim reiterated that Malaysia and China have set up a “special channel” for investors of both countries to boost bilateral investments to serve as an inquiry and problem-solving platform.
Source: New Straits Times