Exim Bank Successfully Prices US$500 Mln Senior Notes
KUALA LUMPUR, Oct 14 (Bernama) — Export- Import Bank of Malaysia Bhd (Exim Bank) has successfully priced its US$500 million five-year, senior unsecured notes (Notes) offering at 120 basis points over US Treasuries at a fixed coupon of 2.48 per cent.
In a statement today, Exim Bank said this offering marks its third US dollar denominated public offering issuance, following a successful inaugural senior US dollar Notes issuance in 2012 and senior US dollar Sukuk issuance in 2014.
It said the Notes will be issued pursuant to the bank’s recently upsized US$3.0 billion Multicurrency Medium Term Note Programme.
The Notes were offered based on the Regulation S format under the US Securities Act 1933, as amended, and are expected to be rated A3 by Moody’s Investors Service, Inc and A- by Fitch Ratings Ltd, said the bank.
“Proceeds from the offering will be utilised for Exim Bank’s general banking and financing activities, working capital as well as other corporate purposes.
“The Notes are expected to be listed on the Singapore Exchange Securities Trading Ltd and the Labuan International Financial Exchange Inc,” said Exim Bank.
The bank said the notes had attracted interest from 79 accounts from a diverse group of investors comprising Asian investors who accounted for 88 per cent of the total allocation, with Malaysian investors accounting for eight per cent and the remaining 12 per cent allocated to EMEA (Europe, the Middle East and Africa) investors.
By investor type, the offering saw majority participation from fund managers (67 per cent), banks (23 per cent) and insurance companies (eight per cent) with the remaining two per cent allocated to other investor classes, it said.
President/Chief Executive Norzilah Mohammed said Exim Bank took advantage of the conducive market conditions when launching the transaction, which received overwhelming support from investors.
“The tight pricing achieved by the bank, the level of subscription and diversification of investors in the offering is a testament of investors’ confidence in Exim Bank’s strong credit position and our unique role as Malaysia’s only development financial institution dedicated to promoting the development of cross-border business ventures, ” she said.
CIMB Bank (L) Ltd and The Hongkong and Shanghai Banking Corporation Ltd acted as the Joint Global Coordinators for the offering, and, together with Maybank Investment Bank Bhd and Nomura International plc, acted as the Joint Bookrunners and Joint Lead Managers for the offering.