CIMB Group Holdings Bhd’s shares on Bursa Malaysia took a hit in the early trading session today on news of its connection with troubled oil trader Hin Leong Trading, which owes almost US$4 bil to more than 20 banks.
As at 11.44am, the counter, which contributed 4.70 points towards the composite index, declined 12 sen to RM3.49 with 12.59 million shares changing hands.
Recent news reports said CIMB Group is believed to be the Malaysian bank which has an exposure of approximately US$120-130 mil to Hin Leong.
AffinHwang Capital said other global banks with major exposure to Hin Leong include HSBC Holdings Plc, ABN Amro Bank and DBS Bank Ltd.
“We understand that Hin Leong and its sister company, Ocean Tankers which owns more than 100 cargo ships, both filed for bankruptcy protection last Friday, which will give the companies 30 days to restructure their debt.
“The Singapore police had also announced that they have launched an investigation into Hin Leong after the group’s US$800 mil oil losses,” AffinHwang Capital said in a research note today.
It added that the gap between the company’s assets and its liabilities was reportedly at US$3.34 bil. — April 22, 2020, Bernama
