The practice note falls under the Guidelines on the Offering of Private Debt Securities (PDS Guidelines) and is entitled Practice Note 1 (PN1) on the Application of the Guidelines on the Offering of Private Debt Securities to the Offer, Issue or Invitation of Foreign Currency Denominated Private Debt Securities.

PN1 addresses the impracticalities of fully applying all the requirements of the SC's PDS Guidelines on a Malaysian public company making an offer, issue or invitation in relation to foreign currency denominated private debt securities, exclusively to persons outside of Malaysia.

For this purpose, Practice Note 1 clarifies aspects of the SC's PDS Guidelines that would still be applicable as well as those that would no longer apply to such issues, offers or invitations.

Among others, PN1 stipulates that investor protection-related requirements on rating, underwriting, minimum denomination and mode of issue need not apply to such issues, offers or invitations that are made to investors outside of the Malaysia. It is presumed that these investors will be protected by the rules in their respective home jurisdictions.

Advisers also need not submit an adviser's declaration as per Appendix 1 of the PDS Guidelines but should nonetheless, continue to ensure compliance with other areas of the PDS Guidelines.

PN1 also clarifies that any funds raised from such offers, issues or invitations cannot be channelled to finance such activities in Malaysia as may be announced by the National Bond Market Committee (NBMC) from time to time.