Debentures Companies in Malaysia

Debentures are a type of debt instrument that is typically issued by large companies to raise capital. The debenture holder is essentially lending money to the company and is entitled to interest payments and the return of capital at the end of the term. Debentures are typically issued for terms of 5 to 10 years.

In Malaysia, debentures are regulated by the Securities Commission. Companies wishing to issue debentures must first submit a prospectus to the Commission for approval. The Commission will then assess the company's financial position and the risks associated with the debenture issue before deciding whether to approve it.

Once approved, the company can then proceed to issue the debentures to investors. Interest payments on debentures are typically made semi-annually. At the end of the term, the company will redeem the debentures and return the capital to the investors.

Debentures are a popular investment choice in Malaysia due to the relatively high interest rates that are offered. They are also seen as a relatively safe investment as the company is legally obliged to make the interest payments and return the capital. However, investors should be aware of the risks involved, such as the possibility that the company may default on the payments or that the value