COUNTRY REPORT MALAYSIAinitial target of US$100m target after the
borrower exercised the greenshoe option.
Signing will take place in the next few
weeks.
Cathay United Bank was the mandated
lead arranger and bookrunner on the loan,
which offers an interest margin of 400bp
over Libor and has a 3.1-year average life.
Banks joining as MLAs were offered a top-
level all-in of 413bp, via a participation fee
of 35bp.
The guarantor is Bank of the Lao PDR,
the central bank of the Lao People’s
Democratic Republic. BCEL’s shareholders
include the Ministry of Finance of Laos
(70%) and Compagnie Financière de la BRED
(10%), a fully owned subsidiary of France’s
Groupe BPCE.
In December 2015, Cathay United
and First Commercial Bank arranged a
US$158m four-year debut term loan for
Bank of the Lao PDR, at a top-level all-in of
448.23bp, based on a margin of 435bp over
Libor and a 3.4-year average life.
For full allocations, see http://www.ifrasia.com.
MALAYSIA
DEBT CAPITAL MARKETS
› MAYBANK PRINTS FIVE-YEAR FRN
MALAYAN BANKING (Maybank), rated A3/A–/A–,
issued five-year floating-rate notes last
Monday to raise US$100m at 70bp over
three-month Libor.
The senior unrated bonds will be listed
on the Singapore Exchange.
› LPPSA HIRES SEVEN FOR SUKUK
LEMBAGA PEMBIAYAAN PERUMAHAN SEKTOR AWAM
has mandated seven banks as joint lead
managers for a M$3bn (US$1bn) offering of
Islamic bonds.
AmInvestment Bank, Affin Bank, Bank Islam,
CIMB, Maybank, OCBC and RHB will market
the federal government-guaranteed sukuk
at tenors of five to 30 years.
This will be the Malaysian public-sector
housing financing agency’s first issue for
this year. It raised M$3bn in September
last year in four tranches of three, seven,
20 and 30 years at 3.95%, 4.28%, 5.05% and
5.26%, respectively.
› DANGACAP BACK FOR SECONDS
Malaysian state-owned investment company
Khazanah Nasional has raised M$2bn from
15.5-year Islamic bonds priced at 5.02%.
CIMB and RHB were joint leads on the
private placement. The notes, with a RAM
rating of AAA, settled on March 21. DANGA
CAPITAL, Khazanah’s funding vehicle, was the
issuer.
This is Danga Capital’s second issue for
the year, after selling in January a M$1.5bn
15-year sukuk, paying 4.94%.› CAGAMAS DOUBLES SUKUK SIZECAGAMAS last Wednesday priced M$1bn of
three-year Islamic bonds at 4.17%, via sole
lead RHB Investment Bank, after doubling the
minimum issue size in response to strong
orders.
The notes priced around 58bp over
Malaysian government Islamic securities
and flat to where Cagamas raised M$525m
from three-year sukuk in mid-March, via
joint leads AmInvestment Bank and Maybank.
The two prints came after the state-
owned mortgage lender issued M$750m
of two-year 4.1% conventional medium-
term notes and M$500m of conventional
commercial paper on March 14.
RAM and Marc both see Cagamas as a
AAA credit.› CIMB GROUP SELLS T2 SUB NOTESCIMB GROUP HOLDINGS has sold M$700m of 10-
year non-call five bonds priced at 4.95%.
The subordinated notes, which settle on
Thursday, March 29, will qualify as Tier 2
capital.
The firm, rated AA1/AA+ (RAM/Marc),
owns CIMB Bank and CIMB Investment Bank,
which was sole lead manager on the issue,
which Marc rates AA.› UITM PLANS GREEN SRI SUKUKUITM SOLAR POWER intends to raise up to
M$240m from the sale of Green SRI Islamic
bonds through joint lead managers Affin
Hwang Investment Bank and Maybank.
The proceeds will be used to develop a
50MWac greenfield solar power plant in
Pahang, costing an estimated M$277.9m.
Funding will be done at a finance-to-equity
ratio of 80:20, with equity injections to be
made via ordinary shares and redeemable
cumulative convertible preference shares.
A launch of the sukuk, which Marc rates
AA, will only take place on completion
of the equity portion. Completion of the
power plant is scheduled for end-2018.
UiTM Solar, a unit of UiTM Energy &
Facilities, won the concession in early
2017to build and operate the power plant
from state-owned Energy Commission.
Electricity will be sold to Tenaga Nasional
under a 21-year agreement.
UiTM Energy is ultimately part ofUniversiti Teknologi Mara, which comes
under the jurisdiction of the Ministry of
Higher Education.› ECO BOTANIC SELLS THREE-TRANCHERMalaysian property developer ECO BOTANIC
has raised M$150m from three tranches
of bonds with maturities of three and five
years.
The M$50m three-year tranche, with
a guarantee from state-owned insurer
Danajamin Nasional, will pay 4.9% and a
M$50m five-year, also with a Danajamin
guarantee, will pay 5.07%. A third M$50m
three-year standalone piece will pay 6.4%.
Settlement was last Friday. The first two
tranches will be drawn from a M$150m
unrated guaranteed MTN programme,
while the standalone piece will be issued
off a M$100m unrated MTN scheme.
This is the first time that Danajamin has
guaranteed unrated bonds.
Proceeds will be used partly to fund
development projects at the Eco Botanic
township, being developed in Johor. Eco
Botanic is a unit of Eco World Development
Group.
MIDF Amanah Investment Bank is principal
adviser, lead arranger and lead manager on
the programme, and sole lead manager on
the issue.› UMW SETS SIGHTS ON PERPSMalaysian automotive company UMW
HOLDINGS is preparing to sell Islamic
perpetual bonds off a newly established
musharakah programme of M$2bn.
CIMB and Maybank are joint principal
advisers, joint lead arrangers and joint lead
managers on the programme, while CIMB
Islamic Bank and Maybank Islamic Bank are
joint shariah advisers.
The notes have a RAM rating of A1, two
notches below UMW’s corporate AA2,
to reflect the deep subordination of the
perpetuals.
The company said in a statement to
Bursa Malaysia last Thursday that the
perpetual notes would improve its financial
health with longer-duration funding. The
notes will be treated as 50% equity from a
rating viewpoint, and 100% equity from an
accounting perspective.
UMW, which state-backed Permodalan
Nasional owns, is acquiring controlling
stakes in carmaker Perusahaan Otomobil
Kedua and car distributor MBM Resources.
The costs of the purchases are estimated at
M$1.4bn to be funded mainly with equity.
Of the costs, M$1.1bn could be meet with
cash from bridging loans.
Proceeds from the perpetual bonds will
be used to repay debt.