KUALA LUMPUR: iFAST Capital Sdn Bhd, a wholly owned subsidiary of Singapore based iFAST Corporation Ltd (iFAST Corp), has opened the bond market to retail investors using its online portal, FSMOne.
iFAST Corp CEO Lim Chung Chun said this is in line with the revolution of financial technology and in conjunction with the Securities Commission’s initiative to liberalise the regulatory framework to facilitate greater access into the RM1.3 trillion Malaysian bond and sukuk market.
“Under our platform, investors will be able to transact retail-qualified bonds and sukuk from as low as RM1,000,” he said at a press conference after unveiling the new product today.
He added that under this new segment, iFAST expects 20% of the RM470 billion fixed deposit market to shift into retail bonds in five to 10 years’ time.
Lim also said the new regulation has allowed bond issues that have met the seasoning criteria to be offered to non-sophisticated retail investors through a product highlight sheet without the need for issuers to make disclosure via a full-fledged prospectus.
“Under this framework, corporate bonds and sukuk that are eligible must have been in the market for at least 12 months, and must have a minimum credit rating of A, among other requirements.
“The range of corporate bonds and sukuk that can be offered to retail investors has also expanded to include more than just its normal products,” he said.
He also said that currently, bonds denominated in the ringgit, US dollar, Singapore dollar and Chinese yuan are offered via the platform.
“Our targets are the retail investors as well as fixed deposit customers looking for medium to long-term investment as bonds offer higher yields than fixed deposits,” he said.
