KUALA LUMPUR, Sept 17 (Bernama) -- CIMB Bank and Standard Chartered Bank Malaysia jointly announced today the completion of the first MYR KLIBOR - USD SOFR cross currency basis swap transaction. The USD100 million trade is the first MYR - USD cross currency transaction referencing the USD Secured Overnight Financing Rate (“SOFR”), which is the Risk Free Rate to succeed the USD London Interbank Offer Rate (“LIBOR”). 

The successful conclusion of this transaction coincides with the Malaysian Financial Markets event to be held on 18th September, the Malaysia IBOR Transition. Organised by the Asia Securities Industry and Financial Markets Association (ASIFMA), in collaboration with the Financial Markets Association of Malaysia (FMAM), the event will include a keynote address by Bank Negara Malaysia Assistant Governor Aznan Abdul Aziz. 

“We are extremely pleased to extend Standard Chartered’s global commitment towards working with financial markets participants and clients in navigating the global benchmark reforms. Standard Chartered had previously concluded the first CNY cross currency swap referencing the CNY repo rate and the USD SOFR and the first SGD SORA - USD SOFR cross currency swap in the region. With this MYR transaction, being another first MYR cross currency swap referencing USD SOFR, Standard Chartered continues our pioneering efforts in the Asian cross-currency derivatives markets. 

“This underscores Standard Chartered’s dedication and enthusiasm towards the development of Malaysian financial markets by working closely with our clients, industry bodies and regulators. A liquid interest rate derivatives market that adopts new globally accepted reference rates is crucial to allow Malaysian institutions to hedge effectively and efficiently. We will continue to contribute to this development by leveraging on Standard Chartered’s rich global experience,” said Sylvia Wong, Head of Financial Markets (ASEAN excluding Singapore) at Standard Chartered. 

“As one of the largest financial market participants in the local currency space in Malaysia and ASEAN, CIMB is delighted to reinforce our readiness in handling the IBOR transition in our key markets in ASEAN. In addition to this landmark transaction, CIMB Bank had also concluded our first local interbank USD SOFR interest rates swap that is centrally cleared through the LCH. Furthermore, our subsidiary CIMB Thai Bank had also transacted its maiden THB THOR (Thailand Overnight Repurchase Rate) Overnight Index Swap (OIS) and medium term interest rate swap trades. 

“Global benchmark reforms have impacted various ASEAN local currency markets either directly or indirectly. Divergence in the development paths and the distinctive nuances in each market poses unique challenges to each local financial market. With our extensive ASEAN footprint and our deep involvement in the development of the respective local financial markets, CIMB is well positioned to contribute towards the local market development agenda,” added Chu Kok Wei, Group Treasurer of CIMB Group.

CIMB Bank
CIMB Bank is the consumer banking arm of CIMB Group, offering retail and commercial banking services. 

CIMB Group is one of ASEAN’s leading universal banking groups and is Malaysia’s second largest financial services provider, by assets. It offers consumer banking, commercial banking, investment banking, Islamic banking and asset management products and services. Headquartered in Kuala Lumpur, the Group is present in all 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar, Laos and Philippines). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Korea, the US and UK. 

CIMB Group has one of the most extensive retail branch networks in ASEAN with 669 branches as at 30 June 2020. The Group’s investment banking arm is one of the largest Asia Pacific-based investment banks, while it offers comprehensive research coverage around of 950 stocks in the region via its CGS-CIMB joint venture. 

CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.8% shareholder of CIMB Thai in Thailand. 

CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM35.1 billion as at 30 June 2020. The Group has around 35,000 employees located in 15 countries. 

Standard Chartered Malaysia
Standard Chartered Bank, a member of the Standard Chartered Group was established in Malaysia in 1875. As Malaysia’s first bank, Standard Chartered leads the way through product innovation, consistent and strong growth performance and sustainability initiatives. The Bank provides a comprehensive range of financial solutions to corporates, institutions and individuals through its network of branches across Malaysia. The Bank has an Islamic banking subsidiary, Standard Chartered Saadiq; a global shared services centre, Standard Chartered Global Business Services; a sales arm, Price Solutions and an offshore facility in Labuan. 

Standard Chartered employs over 7,000 employees in all its Malaysian operations. 

Standard Chartered
We are a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 85. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, Here for good.  

Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India. 

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SOURCE: CIMB Group 

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Lynn Guha Thakurta
Group Corporate Communications
CIMB Group Holdings Berhad
Email: lynn.thakurta@cimb.com

Name: Ang Hui Hsien
Associate, Corporate Communications and CCIB
Marketing
Standard Chartered
Tel:+6012 222 1513
Email: huihsien.ang@sc.com 

--BERNAMA