What are the most significant cases or transactions that your legal team has recently been involved in?

CIMB launched a landmark sustainability-linked treasury programme, which enables and incentivises clients to embed their environmental, social and governance aspirations into treasury risk management solutions customised to the client’s requirements. Once onboarded under this programme, the clients stand to receive a rebate linked to the achievement of pre-agreed Sustainability Performance Targets (SPTs). SPTs are unique to each client’s business profile and sustainability aspirations and are subject to stringent independent third-party verification. In addition, the programme provides for a longer-term treasury solution by moving from one-off transactions towards a recurring business-as-usual flow programme framework. Under this programme, CIMB will help clients from a wide range of industries and sectors to advance their respective ESG agendas and create positive impacts through sustainable finance solutions. CIMB onboarded clients from different segments, including Intercontinental Specialty Fats (ISF), Farm Fresh, and Sunway. Despite the bespoke customisation of each trade for different clients from different industries or sectors, from the aspect of the determination of SPTs, sustainability-linked rebates and tracking of KPI success, the legal department can seamlessly complete each set of documentation.

Due to the legal department’s strong collaborative effort with its stakeholders, preparation of a robust set of documentation and expedient address of legal issues, the bank can swiftly launch the programme and ensure the completion of documentation for each client.

Since March 2022, the Federal Reserve has embarked on a monetary tightening cycle to curb surging inflation rates, leading to a rise in the Fed Funds Rate from nearly zero to above 5% at the time of writing. Alongside the aggressive rate hiking cycle, economists have been projecting a recession in the not-too-distant future. Under such an environment, CIMB proposed a first-of-its-kind series of risk-free rate (RFR) options, the USD SOFR Collared Floater, and a vanilla cross-currency swap (CCS) with a local fund management firm.

As the market had expectations of further Fed Funds Rate hikes (to stem inflationary pressure) before a potential rate-cutting cycle, the USD SOFR Collared Floater was opportunistic to capture this view. The legal department worked closely with the structuring team to ensure a timely and accurate record of the commercial intention that enabled the trading of such first trade to meet the demands and requirements of the client.

Health-oriented and wellness consumer product manufacturer DXN Holdings has debuted on the Main Market of Bursa Malaysia Securities at RM0.69 with an opening volume of 12.71 million shares. DXN Holdings has raised RM 112m in proceeds through its retail offering. Of the total proceeds raised, RM 80 m has been allocated to repay bank borrowings. At the same time, RM 7.9 m is earmarked for working capital requirements, mainly for purchasing primary raw materials used to produce finished goods and primary packaging materials. Another RM 24.1 m of the total proceeds raised will be utilised to defray fees and expenses for DXN’s initial public offering and listing. Maybank Investment Bank is the principal adviser, joint global coordinator, joint book runner, joint managing underwriter and joint underwriter for the IPO. CIMB Investment Bank is the standard international coordinator, everyday book runner, joint managing underwriter and joint underwriter for the IPO. CLSA and CLSA Securities Malaysia are the joint global coordinators and book runners for the IPO. In contrast, RHB Investment Bank is the IPO’s joint book runner and underwriter.

Group Legal provided legal advice and continuous support to the business stakeholders and reviewed various agreements, legal opinions and letters as a critical role in ensuring the success of the IPO.

Could you share an example of a time when you came up with an innovation that improved how your legal team works and did not come at a large expense?

Our Indonesian team implemented legal document automation, which includes the business documentation process, drafting, review, approval and execution of documents. The automation replaces the manual process, and the digitalised documents will be retained in the system. The automation also allows the various loan centres to execute the legal document and centralise credit record retention. The credit review and approval concerning credit documents have increased efficiency. Further, the execution relies on the digital certificate platform approved by a centrally approved agency for digital certificates. All signatures are verified by the agency via API. Seamless legal document automation is an innovation which we propose to adopt across our other footprints.