Exchange Traded Bonds ("ETB")
4B.4
Paragraph 4B.06 of the Main LR requires additional provisions relating to a meeting of sukuk or debt securities holders to be included in a trust deed or any other document governing the rights of the sukuk or debt securities holders. Does it mean that all ETB issuers must have a trust deed?
No, it depends on whether the issuer is required to have a trust deed under the CMSA 2007 and SC's Private Debt Securities Guidelines.
Where an issuer of ETB has a trust deed, the trust deed must include the provisions relating to a meeting of sukuk or debt securities holders as set out in Appendix 4B-A of the Main LR. In the absence of a trust deed, an issuer must include the provisions set out in Appendix 4B-A in any other document governing the rights of the sukuk or debt securities holders.
However, an issuer of ETB is not required to include the provisions set out in Appendix 4B-A of the Main LR if the ETB is:
issued by the Federal Government of Malaysia, State Government of Malaysia or any statutory body ; or
guaranteed by the Federal Government of Malaysia or Bank Negara Malaysia.