KUALA LUMPUR (Dec 22): Bursa Malaysia Bhd and RAM Holdings Bhd are joining hands to develop a new debt fundraising platform that will facilitate listed and unlisted small to mid-sized companies to tap into a new pool of capital outside of traditional wholesale markets.

For this purpose, both parties have inked an agreement to form a joint venture that will be 51% owned by Bursa Malaysia and 49% by RAM. This joint venture company will then apply to be registered under the Securities Commission Malaysia’s (SC) revised Guidelines on Recognized Markets.

The platform provides a ‘bond-like’ experience allowing investors to invest in investment notes with credit and ESG ratings as easily as they would invest in shares in a transparent and regulated market, facilitating informed investment decisions, said Bursa Malaysia and RAM in a statement on Thursday (Dec 22).

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the agreement marks a significant milestone in Bursa Malaysia's journey to become a multi-asset exchange, and will broaden fundraising avenues for both public-listed and unlisted entities, specifically enabling better access to both conventional and shariah investment notes.

"At the same time, we would be able to provide new fixed income investment opportunities to both retail and sophisticated investors. This will further create an alternative fundraising avenue for businesses which are currently underserved amid a challenging environment and not yet ready to be listed on the stock exchange," he said.

RAM group CEO and executive director Chris Lee, meanwhile, said RAM will contribute its expertise in credit ratings, ESG ratings and fixed income pricing to enhance transparency in the ecosystem of debt-based financing and investments.

Shares of Bursa Malaysia closed two sen or 0.3% higher at RM6.75, giving it a market capitalisation of RM5.46 billion.