RHB Investment Bank arranges RM1.5 bil ABS Programme for RCE Marketing

ABS Programme to become largest personal loan securitisation programme in Malaysia

Kuala Lumpur, September 25, 2007:RCE Marketing Sdn Bhd ("RCE Marketing"), a wholly-owned subsidiary of RCE Capital Bhd ("RCE Capital") will be securitizing its portfolio of loan receivables primarily from public sector employees under an asset-backed securities ("ABS") programme of up to RM1.5 billion ("ABS Programme"). The financing arrangement is jointly arranged, advised and managed by AmInvestment Bank Bhd ("AmInvestment Bank") and RHB Investment Bank Bhd ("RHB Investment Bank").

The securities will be issued via Tresor Assets Bhd ("Tresor"), a trust-owned special purpose vehicle ("SPV") incorporated solely to undertake this securitisation exercise.

The ABS Programme, the largest personal loan securitisation programme in Malaysia, will allow RCE Marketing to tap into the debt capital market to further increase its lending capacity and fund its market share expansion in its consumer financing business.

The RM1.5 billion ABS Programme will be issued by Tresor in multiple tranches over a period of 5.5 years up to RM1.5 billion to finance the purchase of receivables from RCE Marketing from time to time. Each tranche of the ABS will consist of multiple series of senior and subordinated bonds with varying face value, each with maturity of up to 10 years. The face value and maturity of each series will be determined prior to the relevant issue date.

The ABS will be secured and backed by specific pools of fixed-rate personal loans extended primarily to public sector employees with repayments being met by non-discretionary monthly salary deductions. These personal loans shall be originated by RCE Marketing via its collaboration with cooperative(s) of the public sector employees and employees of privatised government bodies. Tresor will utilise the cash collections from these underlying assets to service the coupon payments and principal repayment under the ABS Programme.

The senior ABS are expected to be assigned a rating of AAA by RAM Rating Services Sdn Bhd ("RAM") while the subordinated ABS will not be rated. The expected AAA-rating of the senior ABS reflects the strength of the transaction structure which includes a high level of excess spread between the interest on the personal loans and the coupon payable on the ABS, liquidity support by way of reserve accounts to be funded progressively up to a required target level as well as the credit support provided by the subordinated bonds.

The first tranche of ABS is targeted for issuance next month with an estimated issue size of RM100 million.

In connection with the ABS Programme, RHB Investment Bank has granted RCE Marketing a warehouse facility by way of a term revolving credit facility of up to RM100 million. The warehouse facility is to fund the origination of personal loans until they reach an economical size to be sold to Tresor for securitisation under the ABS Programme.

The ABS Programme represents the third time that RCE Marketing is tapping the debt capital markets for more cost-effective funding compared to conventional bank borrowings. RCE Marketing's prior participation in the market comprised two separate private debt securities ("PDS") issuance programmes by its wholly-owned subsidiaries, namely RCE Advance Sdn Bhd and RCE Premier Sdn Bhd.

RCE Marketing is primarily involved in the provision of general loan financing services. This will continue to be the main contributor to the growth in revenue and earnings of RCE Capital Group.

The maximum issue size of the ABS Programme at almost three (3) times over the previous two PDS issues combined of RCE Capital Group has given a very good indication to investors on the current size of operation as well as the strong assets growth of its consumer financing business. The ABS Programme not only represents another milestone for RCE Capital Group but also reflects its confidence in the vibrant and dynamic Malaysian Debt Capital Market.

According to Mr T C Kok, Managing Director of AmInvestment Bank, "the market data shows that there are significant growth opportunities for the ABS market favouring both the issuer and investors."

Mr Kok added that with the successful implementation of this largest consumer receivables ABS Programme, RCE Marketing have added another significant milestone to the ABS market in Malaysia and in this regard, congratulated RCE Marketing Sdn Bhd on their achievement and their contribution to the Malaysian debt capital market.

Mr Kok further highlighted that as a leader in the debt capital markets, AmInvestment Bank is working towards regional cross-border ABS transactions in the near future leveraging on their expertise in providing innovative solutions and structured financing and achievements in Malaysia.

Mr Chay Wai Leong, the CEO of RHB Investment Bank, expressed his confidence that the ABS will be well received by investors given the expected highest grade rating to be assigned by RAM as well as from the track record of RCE Marketing in the personal consumer loan market. "The ABS Programme by RCE Marketing marks the second ABS transaction for RHB Investment Bank this year. With the success of Tresor and Prima Uno Bhd's RM950 million primary collaterised loan obligations transaction earlier this year, RHB Investment Bank is looking forward to introduce more securitisation issues in the Malaysian market. We would like to be more active in structured debt deals going forward," added Mr Chay.