KUALA LUMPUR, Feb 19: Malaysia plans to issue bonds under the Asian Bond Market Initiative, and has asked local investment banks to propose the structure of the bonds, The Edge business weekly said in its latest issue.

Quoting unnamed industry sources, the magazine said the mandate for the arranger of the bonds might be awarded by next month. National mortgage company Cagamas would be asked to take the lead in the issue, it said.

Since the 1997/98 Asian financial crisis, Asean countries plus Japan, China and South Korea have been working to expand and invigorate regional bond markets under the Asian Bond Market Initiative.

The countries are hoping that Asian governments and companies can secure funding within the region using regional currencies, instead of relying on outside capital, and prompt local investors to buy the bonds. -Reuters