K&N Kenanga launches offshore investment bank

K&N Kenanga Holdings Bhd yesterday launched its offshore investment banking unit, Capital Investment Bank (Labuan) Ltd, to mark is first foray beyond the Malaysian shores.

Deputy chairman Abdul Aziz Hashim said the launch of Capital Investment Bank marked the group’s aspiration to become a recognised player in the financial services industry in the Asia Pacific region.

“Through Capital Investment Bank’s offshore investment banking activities, we may be able to meet and offer services in international investment banking, in addition to our present domestic services in stockbroking and fund management services,” he said after the launch in Labuan.

Meanwhile, Capital Investment Bank managing director Megat Mizan Nicholas Denney, said the company will eye lucrative mergers and acquisition projects in Hong Kong, financing arrangement for projects in Thailand and private equity financing.

“Labuan will be our base and we are keen to expand our marketing and project financing operations in Singapore as well,” Megat Mizan said.

He said Capital Investment currently had strategic partners in London and Singapore.

During the launch, Capital Investment Bank also signed its first financing investment project for Lereno Sdn Bhd, a bio-diesel plant, based in Lumut, Perak.

“We are providing equity financing of US$6mil (RM22.8mil) for Lereno,” Megat Mizan said.

Lereno executive director David Long said the plant, which would be commissioned soon, will mainly cater for exports.

“Malaysia as a major crude palm oil production has a lot of potential for bio-diesel production, especially with the current high fuel prices,” Long said.

Loreno is owned by four individuals: Long, who is Australian; Dr Franco Longhini and Giorgio Vanalli, both Italians; as well as Malaysians Jeffrey Fong and Daniel Ho.

Megat Mizan said Capital Investment Bank will be selective in providing financing for investment projects, based on projects that provide a return on Investment of at least 15%.

“We want to ensure a steady cash flow,” he said. – Bernama

K&N Kenanga launches offshore investment bank