IFR Asia – November 25, 2017

International Financing Review Asia November 25 2017 39

COUNTRY REPORT MALAYSIA

and offered at the bottom of the 102.5%–

103.5% range. The conversion premium

was set at 14.96% from the 5%–15% range.

Nomura was the sole bookrunner for the

tranche.

A 4.2-year ¥50bn CB was issued at the

bottom of the 100.5%–101% range and

offered at the bottom of the 102.5%–103%

range. The conversion premium was also

set at 14.96% versus the 5%–15% range.

Nomura and Mizuho were joint bookrunners

for the tranche.

Both tranches attracted strong demand,

according to people close to the deal.

The company will use ¥50bn of the

proceeds to construct a thermal power

station and the other ¥50bn to repurchase

bonds due 2018 in a tender offer.

It is inviting certain holders of its

outstanding ¥50bn zero-coupon CB due

2018 to tender the bonds for purchase

at 100% of their principal amount. The

deadline for the tender offer is December 8.

Nomura is the sole dealer-manager on

the tender offer.

MALAYSIA

DEBT CAPITAL MARKETS

› PNB MERDEKA FILES TWO PROGRAMMES

PNB MERDEKA VENTURES has filed two

sukuk programmes, totalling M$5.65bn

(US$1.4bn), for proceeds to finance the

construction of Malaysia’s tallest building.

Principal adviser and lead arranger

MIDF Amanah Investment Bank lodged the

schemes – a M$2bn merdeka ASEAN

Green sustainable and responsible

investment sukuk programme and a

M$3.65bn merdeka sukuk murabahah

programme – with Malaysia’s Securities

Commission. The lodgements expire on

February 20.

PNB Merdeka, part of largest Malaysian

fund manager Permodalan Nasional, is

building the Merdeka PNB118 Tower

project. When completed in 2024, the

118-storey building will be more than 630

metres high and will house commercial and

retail space, as well as a hotel.

Bankers said funding the project via the

bond markets had been on the table for

a long time, and significant progress was

only made in recent months.

The SRI programme will be the first

sukuk to adopt the newly launched ASEAN

framework of Green bond standards and

comply with Securities Commission’s SRI

sukuk guidelines.

› EDRA READIES M$5.28BN SUKUK

Malaysia’s largest power-project financing

year to date is expected to be launched in

the next two weeks in a M$5.28bn offering

of Islamic bonds.

EDRA ENERGY will be the issuer of the bonds

at tenors of four to 20 years. The issuer

is a wholly owned unit of Edra Power

Holdings, which, in turn, is part of China

General Nuclear Power Corp. CGN acquired

Edra Global Energy, which owns the Edra

companies, from financially strapped 1MDB

in November 2015.

The sukuk proceeds will fund a 2,242MW

combined cycle fast-turbine power project

in Malacca, touted to be the largest gas-

fired power plant in the country.

The Islamic bonds have AA3 ratings

from RAM to reflect the project’s estimated

strong economics with a minimum finance

service coverage ratio of 1.5x. Part of the

project risks is mitigated with a 21-year

power-purchase agreement with state-

owned utility Tenaga Nasional. CGN is

also undertaking to retain a majority

shareholding stake of at least 51% if it sells

down its 100% stake at a later stage.

The M$5.28bn represents 80% of the

project costs estimated at M$6.5bn.

The balance will be funded with equity

injections. Completion is targeted for

2021.

CIMB Investment Bank is sole principal

adviser and financial adviser, as well as

joint lead manager with Maybank and RHB.

› MBSB PLANS EXCHANGE OFFER

MALAYSIA BUILDING SOCIETY will undertake

a consent solicitation to authorise

a proposed exchange offer for its

outstanding M$2.525bn covered Islamic

bonds.

The trigger for the consent and exchange

offers is MBSB’s planned acquisition of

Asian Finance Bank. After the acquisition,

MBSB will transfer all its Islamic assets and

liabilities to AFC.

MBSB, with government agency

Employees Provident Fund as a major

shareholder , entered into a conditional

share-purchase agreement with AFC’s

shareholders on November 6 to acquire

the bank for M$644.95m. AFC’s owners

are Qatar Islamic Bank, Financial

Assets Bahrain, RUSD Investment Bank

and Tadhamon International Islamic

Bank. The acquisition is targeted to be

completed in the first quarter of next

year.

RHB Investment Bank and AmInvestment Bank

will manage the consent and exchange

offers in their capacity as financial advisers

to MBSB on the acquisition, which will be

funded with cash from internal resources

and shares.

The exchange offer will affect

outstanding bonds the funding vehicle

Jana Kapital issued off a 15-year M$3bn

structured covered sukuk commodity

murabahah programme. MBSB said the

exchange would have AFC issue new

structured covered sukuk under a new

programme to existing holders of the

outstanding covered sukuk. The structure,

terms and conditions of the new bonds

will be the same as those outstanding

bonds.

The consent and exchange process are

expected to take place next year.

› GAMUDA PLACES M$500M OF BONDS

GAMUDA has privately placed M$500m of

five-year Islamic bonds priced at 4.825%,

with CIMB Investment Bank as sole lead

manager.

S034334/5-16

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