Bursa Malaysia and RAM Holdings Join Force to Develop New Debt Fundraising Platform

Bursa Malaysia and RAM Holdings have entered into a shareholders' agreement to develop a new debt fundraising platform.

RAM is a provider of independent credit ratings, research, training, risk analysis, ESG analytics and bond pricing.

The new platform is being developed to enable listed and unlisted small to mid-sized companies to tap into a new pool of capital and raise funds from outside of traditional wholesale markets, Bursa Malaysia and RAM said in a joint statement.

"The platform provides for a 'bond-like' experience allowing investors to invest in investment notes with credit and ESG ratings as easily as they would invest in shares in a transparent and regulated market, facilitating informed investment decisions."

The joint venture will be carried out through a new company, which will be 51 percent owned by Bursa Malaysia and 49 percent by RAM, subject to authorisation from the SC (Securities Commission).

"Our collaboration with RAM will broaden fund raising avenues for both our PLCs and unlisted entities – specifically enabling better access to both conventional and Shariah investment notes," said Bursa Malaysia CEO Datuk Muhamad Umar Swift. "At the same time, we would also be able to provide new fixed income investment opportunities to both retail and sophisticated investors."

He added that the collaboration would further create an alternative fundraising avenue for businesses that are currently underserved and not yet ready to list on the exchange.

RAM CEO and executive director Chris Lee said the company will contribute its expertise in credit ratings, ESG ratings and fixed income pricing, and enhance transparency in the debt financing and investment ecosystem.