Page 47 - DBP5043

MARKETABLE SECURITIES

Types of marketable securities

1. Malaysian Treasury Bills (MTB) –

MTB are short-term securities issued by the Government of Malaysia
to raise short-term funds for Government's working capital. Bills are
sold at discount through competitive auction, facilitated by Bank
Negara Malaysia, with original maturities of 3-month, 6- month, and
1-year. The redemption will be made at par. MTB are issued on
weekly basis and the auction will be held one day before the issue
date. The successful bidders will be determined according to the most
competitive yield offered. Normal auction day is Thursday and the
result of successful bidders will be announced one day after. MTB are
tradable on yield basis (discounted rate) based on bands of
remaining tenure (e.g., Band 4= 68 to 91 days to maturity). The
standard trading amount is RM5 million, and it is actively traded in
the secondary market.

2. Malaysian Islamic Treasury Bills (MITB) –

are issued to allow Islamic banks to hold liquid papers that meet their
statutory liquidity requirements.

3. Promissory Note –

A promissory note is a financial instrument that contains a written
promise by one party (the note's issuer or maker) to pay another
party (the note's payee) a definite sum of money, either on demand
or at a specified future date. It is an unconditional promise to pay a
specific amount to bearer or to the order of a named of person, on
demand or on a specific date. It is a written promise by a maker to
pay money to the payee.