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LABUAN INTERNATIONAL FINANCIAL EXCHANGE (LFX) APPOINTS CITIBANK MALAYSIA (L) LIMITED AND CAPITAL INVESTMENT BANK (L) LTD AS LISTING SPONSORS.
BackMay 03, 2006
03 May 2006
LABUAN INTERNATIONAL FINANCIAL EXCHANGE (LFX) APPOINTS CITIBANK MALAYSIA (L) LIMITED AND CAPITAL INVESTMENT BANK (L) LTD AS LISTING SPONSORS
The Labuan International Financial Exchange (LFX) announced the appointment of Citibank Malaysia (L) Limited and Capital Investment Bank (L) Ltd (Capinbank) as its 9th and 10th Listing Sponsors respectively.
The license presentation ceremony took place in Labuan yesterday in conjunction with a seminar on Malaysian International Offshore Financial Centre (IOFC) Labuan. The awards were presented by Chairman of LFX Licensing Committee, Dato' Dr. Nik Norzrul Thani and witnessed by Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz, Chairman of Labuan Offshore Financial Services Authority (LOFSA) and Governor of Bank Negara Malaysia. The seminar was held as part of LOFSA's 10th Anniversary celebration.
A Listing Sponsor of LFX is primarily responsible to provide advice, structure and arrange for the listing of both conventional and Islamic financial instruments on the LFX and; for any subsequent post-listing obligations arising from the listings of the instruments. The roles and responsibilities of a Listing Sponsor amongst others also include preparation of financial instruments for listing subject to the terms and rules of LFX's listings, underwriting and placements of the financial instruments listed, undertaking the tasks of an issuing house and post-listing responsibilities and obligations.
Yusli Mohamed Yusoff, Chairman of LFX Board and CEO of Bursa Malaysia Berhad said, " This announcement marks a debut appointment of foreign financial institutions as LFX listing sponsors. It is a testimony of LFX's growing credibility and the increasing recognition by international financial institution on LFX as an offshore exchange as well as a global offshore financial business sector."
He added, "Bursa Malaysia Berhad, the parent company is pleased with this development and we hope to see more listing sponsor licenses being issued to various financial institutions that boast a wide array of products and services mainly out of Labuan international offshore financial centre."
Sanjeev Nanavati, Country Head for Corporate and Investment Banking, Citigroup Malaysia said, "Citibank Labuan is delighted to be picked as the first foreign listing sponsor on LFX. Given our depository, clearing and settlement abilities this listing license will help us to further develop our business in Labuan and help contribute to the development of Labuan as a major financial centre."
"Business opportunities are amazing, sometimes our parent company enjoy the networking that begins in Labuan", said Megat Mizan Nicholas Denney, Managing Director, Capital Investment Bank (L) Ltd. Capinbank has seen the potential of LFX and plans to tap the available international resources via LFX.
With the above licensing, LFX now has 10 Listing Sponsors. The current number of listing on LFX is 36, comprising of six (6) Sukuks, six (6) open-ended funds and twenty-two (22) conventional debt securities and exchangeable bonds and two (2) preference shares. This brings the total market capitalisation of LFX to USD13.45 billion. LFX hopes that the increase in number of its industry participants will further accelerate the growth in the number of financial instruments, Islamic or conventional, listed on the exchange.