Further Relaxation of Restrictions on Use of Proceeds from Issuance of Private Debt Securities

Kuala Lumpur, 3 December 2001

The Securities Commission (SC) is pleased to announce, on behalf of the National Bond Market Committee (NBMC), the relaxation of some restrictions on the utilisation of proceeds from issuance of private debt securities (PDS). This is in line with the recent relaxation of lending restrictions by Bank Negara Malaysia (BNM). An updated NBMC Negative List is provided in Appendix 1.

Following these relaxations, proceeds from PDS issues can now be used to finance the development of residential properties priced above RM250,000 per unit on condition that the proceeds of the bond issues shall only be drawn-down upon achieving break-even sales (in value terms).

Further, proceeds from the issuance of PDS may be used to finance the development of shop houses priced above RM250,000 per unit on condition that such development is located within residential areas and the proceeds of the bond issues shall only be drawn-down upon achieving break-even sales (in value terms).

Further information on the NBMC Negative List is available on the SC's official website at www.sc.com.my.

SECURITIES COMMISION MALAYSIA

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The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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