KUALA LUMPUR, Public Bank Bhd has introduced a RM10 billion commercial paper (CP) programme, designed to provide the banking group with greater flexibility in raising short-term funds over the next seven years.
According to its filing with Bursa Malaysia, the bank has submitted the required documentation to the Securities Commission Malaysia (SC) through its investment banking arm, Public Investment Bank Bhd (PIVB), under the SC’s Lodge and Launch Framework. This framework enables issuers to obtain faster approval and access the capital market more efficiently.
The CP programme gives Public Bank the option to issue short-term debt instruments in multiple tranches, depending on its funding needs, rather than raising the entire amount upfront. Such flexibility is expected to strengthen its liquidity management and support its operational and financing requirements.
Credit rating agency RAM Ratings has assigned a top-tier short-term rating of P1 to the programme, reflecting strong confidence in Public Bank’s creditworthiness and its ability to meet repayment obligations in a timely manner.
PIVB has been appointed as the principal adviser, lead arranger and lead manager for the programme, overseeing the structuring and issuance process.
On Wednesday, Public Bank’s shares ended 0.69% higher at RM4.36, valuing the group at RM84.63 billion. Despite the gain, the counter has declined 3.96% year to date. Public Bank remains Malaysia’s third-largest bank by assets, known for its robust financial position and conservative risk management.
The launch of the CP programme is seen as part of the bank’s ongoing efforts to diversify funding sources and maintain a strong balance sheet amid a competitive banking landscape and evolving macroeconomic conditions.
