Bank Pembangunan Malaysia launched the largest ever debt securities programme in the country worth about RM7 billion.

"This landmark programme is indeed significant as it is the largest debt programme ever arranged by a financial institution, and is the largest programme ever established by any issuer in the (private debt securities) market," it said.

Bank Pembangunan Malaysia is wholly-owned by the government through the Finance Ministry.

The bank finances business in a number of sectors, including shipping, electronics, food production and transportation.

The bank said the securities would take the form of conventional or Islamic medium-term notes, which would allow it greater flexibility.

The transaction allows the bank "to meet the funding requirements of both its Islamic and conventional banking activities, as and when the need arises," it said in a statement.

Funds for infrastructure projects

Proceeds from the sale of the securities over 30 years, starting in 2006, will fund the bank and its subsidiaries' lending activities and capital requirements.

Bank president Abdul Rahim Mohamad Zin said a substantial amount of the financing would go towards the infrastructure sector, where the bank currently holds a portfolio of RM12 billion in projects.

"Our commitment will be around seven billion ringgit in the next couple of years in terms of those we have approved. The level of approval a year will be about three billion ringgit," he was quoted as saying by the state Bernama news agency.

Abdul Rahim said the bank's asset size was expected to grow to RM23 billion in 2006 compared to RM17.5 billion last year.