Both joint owners have committed
to addressing any shortfall in capital
contributions from either one of them.
Southern Power plans to raise the entire
M$4bn in a single trade. Proceeds from the
bonds, which Marc rates AA-, will make up
about 80% of an estimated total project cost
of M$4.6bn.
The remaining 20% will come from
equity contributions, part of which will be
funded with a M$610m junior facility. The
junior facility will be repaid through an
issuance of redeemable preference shares
once the plant is fully operational.
As with all of its power projects, TNB has
signed a 21-year offtake agreement, which,
Marc says, is without demand and fuel
price risks.
Investors have the further comfort
of a covenant, under which Tenaga will
maintain at least 51% direct or indirect
interest in Southern Power throughout the
sukuk’s tenor.
› RHB BANK PRINTS T2 NOTES
RHB BANK issued M$750m of 10-year non-
call five bonds last Wednesday at 4.82%,
with RHB Investment Bank as sole lead
manager.
The subordinated notes, with a AA3
RAM rating, qualify as Tier 2 capital
under the Basel III framework. The
Malaysian lender will use the proceeds
for general working capital and other
corporate needs..
› DANAJAMIN INCREASES T2 SIZE
DANAJAMIN NASIONAL last Tuesday increased
to M$500m the size of 10-year non-call 5
Islamic bonds after pricing them at 4.80%.
The maiden offering, with a minimum
target size of M$300m at a guidance of
4.75%-4.85%, was 1.6x covered.
The insurer, with the Malaysian Ministry
of Finance and Negara Malaysia’s Credit
Guarantee Corporation Malaysia as joint
owners, had capped the issue size at
M$500m as it did not need more.
The bonds will qualify as Tier 2 notes
under Malaysia’s risk-based capital
framework for insurance companies.
Although they will be compliant with an
equivalent-Basel III standard, they do not
include loss-absorption features typically
seen in Basel-III debt.
Danajamin, with a AAA rating from RAM,
is a financial insurer providing guarantees
on bonds from corporate issuers otherwise
unable to access the debt markets at
competitive rates.
The T2 issue, rated AA1, is aimed at
diversifying its capital sources to meet
RBC rules. The insurer is financially
sound with strong liquidity and a low
leverage ratio of around 3.4x. Its capital
adequacy ratio exceeded 300% as at
end-March, well above the regulatory
requirement of 130%.
Settlement will be on October 6.
AmInvestment Bank and Maybank were
joint lead managers on the issue, as well
as joint lead arrangers on a M$2bn senior
and subordinated sukuk murabahah
programme.› BOUSTEAD BACK FOR SECONDSBOUSTEAD HOLDINGS last Thursday issued
M$500m of seven-year bonds priced at
5.9%, a little over two weeks after selling
M$500m bonds of the same tenor at the
same price on September 12.
The latest bonds were issued off a
M$500m sukuk programme under the
murabahah format, while the earlier bonds
were drawn from a M$2bn Islamic MTN
programme.
The Malaysian company, with interests in
plantations, property, financial and vessel
support services, will use the proceeds from
both transactions for debt refinancing and
to fund reserve accounts to meet minimum
required balance under each of the bonds’
terms and conditions.
Affin Hwang Investment Bank was sole lead
arranger for both unrated deals.NEW ZEALAND
DEBT CAPITAL MARKETS
› DUNEDIN RAISES MAX NZ$80MDUNEDIN CITY TREASURY , rated AA (S&P), raised
the maximum NZ$80m it sought from last
Thursday’s dual-tranche wholesale bond
sale through joint leads ANZ and Westpac ,
New Zealand branch.
The NZ$45m three-year floating-rate
notes priced at three-month BKBM plus
43bp, while the NZ$35m 3.79% seven-year
priced 80bp wide of mid-swaps.› AUCKLAND AIRPORT READIES ISSUEAUCKLAND INTERNATIONAL AIRPORT has mandated
CBA and Westpac for a proposed retail and
institutional investor offer of 5.5-year (April
2023) fixed-rate bonds, expected to open
around October 9.
On April 6 this year, the airport operator,
rated A- (S&P), issued NZ$150m of three-
year floating-rate notes, priced 75bp wide
of three-month BKBM.PAKISTAN
SYNDICATED LOANS
› PAKISTAN BACK FOR ONE-YEAR FUNDSThe MINISTRY OF FINANCE, GOVERNMENT OF PAKISTAN
has raised a one-year loan of US$200m
on its return after closing a US$650m
borrowing in June.
Credit Suisse was the mandated lead
arranger and bookrunner of the latest
facility, which Export-Import Bank of China
and United Bank joined.
The financing is likely to be increased
in size to up to US$450m after a few more
banks come in at a later stage.
Proceeds are to fund balance-of-payments
obligations, similar to the six previous
loans the Islamic Republic of Pakistan
(B3/B/B) raised since the beginning of 2014
for a total of US$2bn. Credit Suisse has led
each of those deals.
The sovereign completed a US$650m
one-year facility in June, its largest in the
syndicated loan markets. Credit Suisse
and Emirates NBD were the MLABs of
that bullet facility, which paid a top-level
all-in pricing of around 265bp, based on an
interest margin of 200bp over Libor.SINGAPORE
DEBT CAPITAL MARKETS
› FCL ADDS S$42M TO 3.95% PERPSFRASERS CENTREPOINT last Wednesday tapped
its 3.95% perpetual non-call five issue for
S$42m (US$31m) at par.
The new notes will be consolidated
and form a single series with the original
S$308m bonds issued on September 21.
Settlement will be on October 3, off
a S$5bn multi-currency debt-issuance
programme. A 100bp step-up fee will be
paid on October 5 2027. FCL Treasury will
be the issuer of the notes, with the parent
as a guarantor.
OCBC was sole global coordinator, lead
manager and bookrunner.› VIBRANT CLOSES SWAP OFFERMore than a quarter of investors holding
VIBRANT GROUP ’s S$100m of 7.35% perpetual
notes have accepted the company’s
exchange offer.