after pricing the deal at ¥1,387.
The base deal of 39.7m existing shares
was sold at a 3% discount to August 20’s
market close of ¥1,430, compared to the
marketed discount range of 3%–5%. There is
a greenshoe option of 5.9m shares, or 15%
of the base size.
More than 100 investors participated in
the book. The international tranche was
more than seven times covered and the
domestic tranche was two times covered.
Allocations were skewed towards Asian
hedge funds as well as a few US hedge
funds and long only funds.
There was a shift of 5% in the
international and domestic split, resulting
in the international portion getting
70% of the deal and the domestic portion
30%.
The selling shareholders are private
equity firm JC Flowers & Co, its managing
director Thierry Porte and the fund’s
founder, J Christopher Flowers.
Apart from Porte, the issuer and J
Christopher Flowers are subject to a 180-
day lock-up.
Bank of America Merrill Lynch, Citigroup and
Nomura are the joint global coordinators
and joint bookrunners.
MALAYSIA
DEBT CAPITAL MARKETS
› DIGI PLANS SUKUK CALL
Malaysia’s DIGI TELECOMMUNICATIONS plans to
kick off bookbuilding as early as this week
on an Islamic bond that will raise up to
M$900m (US$218.5m).
AmInvestment Bank, CIMB and RHB are joint
lead managers for the bond, which will
be drawn from a M$5bn Islamic CP/MTN
programme.
It is likely to offer tenors of five, seven
and/or 10 years, with settlement targeted
for September 20.
The telecom company, which is owned
by Digi.com, has not sold bonds since it
raised M$900m from a triple-tranche bond
in April 2017. The 4.38% 2022s, the 4.53%
2024s and the 4.65% 2027s are its only
outstanding bonds, adding scarcity value to
the new deal.
Ram rates Digi and its Islamic bonds AAA
to reflect the issuer’s strong position in
the domestic mobile services industry. It
has the largest cellular subscriber base in
Malaysia, RAM said in a note, and counts
Telenor as its ultimate majority shareholder
with a 49% stake.
› TELEKOSANG REELS IN HYDRO BONDSTELEKOSANG HYDRO ONE has issued M$470m
of Islamic bonds in the world’s first Green
sukuk to fund small-scale hydropower
projects.
The senior sukuk were sold in 15
tranches in tenors of four to 18 years,
priced at par to yield 4.8% to 5.8%, raising
M$470m in total. There were also two
junior zero-coupon conventional tranches
of M$60m each, with tenors of 16 and 18
years.
This brought total issuance to M$590m
to raise funds to build two small plants in
Sabah with a combined installed capacity of
40MW. RAM rated the senior sukuk at AA3
and the junior bonds at A2.
Telekosang Hydro One, which will build,
operate and manage the larger 24MW
plant, is the issuer of both the senior and
junior notes. Telekosang Hydro Two will
built, operate and manage the smaller
16MW plant.
Total project cost of the two plants is
estimated at M$577.85m. Construction
of both projects is scheduled to take two
years, with the commercial operations
scheduled to start on July 31 2021.
Settlement was made on August 6. MIDF
Amanah Investment Bank was sole principal
adviser and lead arranger, as well as joint
lead manager with Bank Islam.
The mini-hydro financing is aligned with
Malaysia’s framework for sustainable and
responsible investment sukuk, and with the
ASEAN Green bond standards, which are
based on the International Capital Market
Association’s Green bond principles.
The projects are jointly owned by Senja
Optima, a privately owned hydropower
developer, and Inno Hydropower, a
subsidiary of Yayasan Sabah Group, a
foundation owned by the Sabah state
government. The two plants have 21-year
power purchase agreements with sole
offtaker Sabah Electricity.› PRESS METAL RETURNS HOMEPRESS METAL ALUMINIUM HOLDINGS has established
an Islamic MTN programme for up to
M$5bn as it mulls a ringgit-denominated
bond offering.
Maybank Investment Bank is sole principal
adviser, lead arranger and lead manager
for the programme, which has a 30-
year validity. The Islamic programme is
structured on the wakala bi al-istithmar
concept.
Proceeds will be used for general
corporate needs, including capital
expenditure and refinancing of debt.
The Malaysian aluminium products
maker sold US$400m 4.8% five-year non-callthree bonds in October 2017 to a roaring
reception that drew orders of US$3.8bn.
The notes were quoted at bids of around
99.75 in mid-August.› TROPICANA PLANS UNRATED PERPSMalaysian property company TROPICANA
plans to sell unrated perpetual non-call five
notes at the end of the month to raise at
least M$200m.
Bookbuilding is scheduled to launch
as early as this week, with the notes to
be issued off a M$2bn senior perpetual
sukuk programme under the musharakah
concept.
CIMB is sole principal adviser, lead
arranger and lead manager for the deal.
If the notes are not called at the end of
five years, the coupon will step up by 2%,
and thereafter by 1% on every anniversary
after the first call date, to a maximum of
15%.
The notes are expected to be secured
against parcels of commercial land
approved for development in Johor Bahru.
Tropicana develops commercial,
residential and leisure projects, including
golfing and other sporting and recreational
facilities, in Malaysia.› SDB GOES FOR SIXESSABAH DEVELOPMENT BANK has raised M$500m
from the sale of six-year bonds priced at par
to yield 4.55%.
The notes were split into two tranches
of M$300m and M$200m with different
settlement dates. The first tranche settled
on August 16 and the second on August 21.
This is the state bank’s third visit this
year, having sold M$1.15bn in tenors of
two, three, five and seven years in April
and M$540m in tenors of two, five and
seven years at end-February.
The bonds are rated AA1 by RAM to
reflect the Sabah state government’s
support for the issuer.
CIMB was sole lead manager for the deal.› ECO WORLD BUILDS ON FIVERSMalaysian property developer ECO WORLD
DEVELOPMENT has raised M$250m from the
sale of five-year bonds priced at par to yield
6.1%.
Settlement was made on August 13.
The unrated notes were issued by
funding vehicle Eco World Capital Assets,
with proceeds to be used to refinance debt
and meet general corporate needs.
CIMB and Maybank were joint lead
managers for the bond, which was drawn
from a M$500m MTN programme.
Among the covenants are the