COUNTRY REPORT MALAYSIAdiscount to October 22’s close of ¥649,
within the 3%–5% indicative range.
There is an overallotment option of up to
15% of the base size and a concurrent third-
party allotment of 17.5m treasury shares.
Books were almost 15 times covered. There
was very strong demand in the international
book from long-only and real estate investors
including existing shareholders, a person
with knowledge of the deal said.
International investors took up 40% of
the offering and domestic buyers were
allocated 60%. The allocation shifted 5%
in favour of international versus domestic
compared with the original plan due to
strong demand, the person added.
The issuer is subject to a 180-day lock-up
period.
Proceeds will be used primarily to fund
existing real estate projects in the greater
Shibuya area and repay outstanding
borrowings.
Daiwa, Mizuho and Nomura are the joint
global coordinators of the deal, and joint
bookrunners and joint lead managers with
Morgan Stanley in the international offering.
MALAYSIA
DEBT CAPITAL MARKETS
› DANAINFRA READIES SUKUK
DANAINFRA NASIONAL has mandated five banks
to lead an offering of Islamic bonds to raise
up to M$4bn (US$974.4m).
Affin Hwang, AmInvestment Bank, CIMB,
Maybank and RHB are expected to launch
the deal as early as this week.
The state-owned owned funding vehicle
for state transportation projects is looking
to sell the notes in tenors of seven to 30
years, depending on investor demand.
The bonds will be irrevocably and
unconditionally guaranteed by the federal
government of Malaysia and will be
drawn from a M$61bn Islamic CP/MTN
programme under the murabahah format
via a tawarruq arrangement.› LPPSA TIES UP SUKUKLEMBAGA PEMBIAYAAN PERUMAHAN SEKTOR AWAM has
raised M$3bn from the sale of government-
guaranteed Islamic bonds in tenors of five
to 30 years.
A M$550m five-year tranche will pay
4.05%, a M$500m seven-year note will pay
4.20%, a M$900m 20-year will pay 4.85% and
a M$500m 30-year will pay 5.10%. All four
Islamic tranches were privately placed with
investors.
A M$550m 10-year tranche was the only
tranche that was put through bookbuilding
last Tuesday and priced at 4.39%, in the
lower half of initial price guidance of
4.36%–4.46%.
All the notes will be unconditionally
and irrevocably guaranteed by the federal
government of Malaysia.
Settlement is on October 31.
Affin Hwang, AmInvestment Bank, Bank Islam,
CIMB, Maybank, OCBC and RHB were joint
lead managers.
This is the Malaysian public-sector housing-
financing agency’s second bond deal for theyear after it raised M$3bn in tenors of five,
seven, 10 and 15 years in March.› ECO WORLD GOES SHORT-DATEDECO WORLD INTERNATIONAL has sold M$350m of
three-year Islamic bonds priced at par to
yield 6.4%.
The deal follows a M$180m offering of
five-year notes in April at 6.65%.
The unrated sukuk settled last Thursday
with proceeds to be used for general
corporate use and debt refinancing.
CIMB and Maybank were joint lead
managers.› UEM SELLS SUNRISE SUKUKUEM SUNRISE has priced M$700m of Islamic
bonds in tenors of three, five and seven
years.
A M$350m three-year tranche was priced
at par to yield 4.85%, a M$100m five-year at
4.98% and a M$250m seven-year at 5.15%.
Settlement is on October 31.
The private placement was jointly led by
CIMB, HSBC Amanah Malaysia and Maybank.
The Malaysian real estate company will
issue the notes, rated AA– by Marc, off a
M$2bn Islamic CP/MTN programme under
the murabahah format via a tawarruq
arrangement.› AFFIN ISLAMIC PRINTS BASEL III SUKUKAFFIN ISLAMIC BANK has printed M$1.1bn of
subordinated Islamic bonds that will qualify
as Basel III-compliant Tier 2 and Additional
Tier 1 capital.
It issued last Tuesday M$800m of IslamicLao Viet Bank returns after a year
Loans Borrower taps up to US$100m loan with tighter pricingLAO VIET BANK has launched a three-year term
loan of up to US$100m, returning to the loan
market after an absence of more than a year.
Cathay United Bank is the mandated lead
arranger and bookrunner of the bullet loan,
which has a base size of US$60m and a
greenshoe option of US$40m.
The deal offers an interest margin of
200bp over Libor.
MLABs committing US$20m or more
will receive an all-in pricing of 217bp via a
participation fee of 50bp, while MLAs joining
with US$10m–$19m earn an all-in pricing of
208bp via a 25bp fee. Lead arrangers coming
in for US$5m–$9m will receive an all-in
pricing of 203bp via a 10bp fee. The deadline
for commitments is November 16.Funds are for working capital purposes.
In September 2017, the borrower raised
a US$40m three-year term loan from six
banks. Cathay United was the sole MLAB on
that deal, which offered a margin of 320bp
over six-month Libor.
Established in 1999, the bank is a joint
venture between JOINT STOCK COMMERCIAL BANK
FOR INVESTMENT & DEVELOPMENT OF VIETNAM (BIDV)
and Laotian state-owned Banque pour le
Commerce Exterieur Lao (BCEL). BIDV is
providing a standby letter of credit to the
latest facility.
Separately, BIDV is in the market for a
US$300m financing. Asian Development
Bank is the sole MLAB of the facility,
which comprises a US$200m A loan anda US$100m B loan. ADB will provide the A
loan, and only the B loan is being syndicated.
The B loan has three and five-year portions.
The interest margins are 110bp and 160bp
over Libor, respectively, for the three and
five-year portions, and the respective average
lives are 2.5 years and 3.15 years. Lenders are
being offered top-level all-ins of 130bp and
173.3bp, respectively, via a fee of 50bp.
In June, BCEL raised a US$150m four-year
debut term loan. Cathay United was the
MLAB on that deal, which offered a margin
of 400bp over Libor and had a 3.1-year
average life. Banks joining as MLAs were
offered a top-level all-in pricing of 413bp via
a participation fee of 35bp.
EVELYNN LIN