KUALA LUMPUR (March 13): Stockbroking and investment advisory firm CGS International Securities Malaysia Sdn Bhd said on Wednesday it has sold RM400 million worth of short-term debt papers.

The issuance, the second tranche of its RM1 billion commercial papers programme, offers a 4.1% annualised interest over three months, CGS said in a statement. The tranche will mature on June 4, 2024, the company said.

“The second tranche saw existing as well as new investors coming on,” said CGS deputy chief executive officer Alan Inn. “In addition, the second tranche was oversubscribed, allowing us to issue a higher amount of RM400 million compared to the first tranche’s RM300 million, and at a lower discount rate.”

The company added that it plans to use proceeds from the issuance for general working capital purposes, including refinancing of any existing or near-term obligations and future borrowings.

The maiden tranche, issued on Dec 22, 2023, carries interest of 4.3% per year over three months and will mature on Mar 22, 2024.

The programme was set up to issue short-term commercial papers with typical duration of one, three and six months, or other tenures of up to 364 days.

CGS noted that the programme “provides financial and funding flexibilities” and broadens its funding base to include short-term fixed income investors.