RHB INVESTBANK begins operations as fully integrated investment bank

Kuala Lumpur, 30 December 2006: The businesses of RHB Securities Sdn Bhd and RHB Futures Sdn Bhd were taken over by RHB Investment Bank Bhd (“RHB INVESTBANK”) today, marking the final step in the formation of the RHB Banking Group’s investment bank.

RHB INVESTBANK will begin operations as a fully integrated investment bank under the stewardship of Chay Wai Leong with immediate effect.

“A new era dawns for RHB INVESTBANK today, and we are confident that we will regain our position as one of the premier investment banks not only in Malaysia but in the region as well,” said RHB INVESTBANK Chairman Dato Abdullah Mat Noh.

The transformation of RHB Sakura Merchant Bankers Bhd and its two subsidiaries – RHB Securities and RHB Futures – into RHB InvestBank is in line with an initiative by Bank Negara Malaysia to consolidate the investment banking business in the country.

The initiative was outlined in the Guidelines for Investment Banks issued by the Securities Commission and the central bank on 1 July 2005.

RHB Sakura Merchant Bankers was renamed RHB Investment Bank Berhad on 10 October 2006 in line with the RHB Banking Group’s plan to transform the merchant bank into an investment bank.

On 1 November 2006 Chay, a career investment banker and country head for Malaysia of South Africa’s Standard Bank, was appointed Chief Executive Officer of RHB INVESTBANK.

With the merger, the Securities and Futures businesses will now operate as divisions of RHB INVESTBANK.

Dato Abdullah assured clients of these two divisions that the status of their accounts and all transactions would remain unchanged.

“Your remisier or dealer’s representative or futures broker’s representative will continue to serve you after the merger. You can continue to call them if and when you wish to buy or sell your stocks and shares,” he said.

“I would also like to assure you that the level of service that you have been used to will remain the same, if not enhanced, under RHB INVESTBANK,” he added.

He said the merger would also bring more benefits to customers of RHB Securities and RHB Futures in the form of better service and a wider range of products and services.

RHB INVESTBANK offers the complete suite of merchant banking products and services, including corporate finance and advisory, debt capital markets, conventional and Islamic financing, underwriting, privatisation, loan syndication and project financing.

In Debt Capital Markets and Islamic Finance, the areas of specialisation include the management and underwriting of private debt securities and structured and project finance, as well as syndication, bridging loans and bank guarantees in Corporate Banking.

Among the services its Securities Division will provide are dealing in securities listed on Bursa Malaysia, book-building and book-running exercises, placement of securities of listed companies, securities margin financing and the Islamic Broking Scheme.

In its Futures Division’s list of products are any contracts issued by Bursa Malaysia Derivatives Bhd such as KL Composite Index Futures, KL Composite Index Option, Malaysian Government Securities Futures, KL Inter-Bank Offer Rate Futures and Crude Palm Oil Futures.

RHB INVESTBANK now has three subsidiaries – RHB Unit Trust Management Bhd, RHB Asset Management Bhd and RHB Research Institute Sdn Bhd.