MALAYSIA
DEBT CAPITAL MARKETS
› KHAZANAH PRINTS LONG SUKUK
Malaysian state-owned investment agency
KHAZANAH NASIONAL priced a M$1.5bn
(US$379m) 15-year sukuk musyarakah at
par to yield 4.94%, off a guidance range of
4.90%–4.95%.
The size of the offering was capped at
M$1.5bn.
Danga Capital is the issuer and Khazanah
is the obligor. The sukuk has a AAA rating
from RAM.
CIMB and RHB were joint bookrunners.
Settlement is expected on January 26.
NEW ZEALAND
DEBT CAPITAL MARKETS
› ANZ NZ SELLS TIGHT YANKEES
ANZ BANK NEW ZEALAND (A1/AA–/AA–) took
advantage of near-perfect market
conditions to raise US$1bn from last
Tuesday’s dual-tranche 144A/Reg S senior
unsecured notes via joint bookrunners
ANZ , Citigroup , JP Morgan and RBC Capital
Markets.
The issue was more than three times
covered with a US$3.6bn combined
order book, enabling the leads to sell the
US$500m 2.75% three-year and US$500m
3.45% 10-year bonds at 63bp and 95bp
over Treasuries, well below the 75bp area
and 110bp area initial price thoughts,
respectively.
The three-year note paid a modest 3bp
new-issue concession with the 10-year
coming flat to the issuer’s US dollar curve,
using its 3.45% July 17 2027 paper as a
comp.
Pricing was also notably tight versus
Australia’s Aa3/AA–/AA– rated major
banks.
ANZ New Zealand’s three-year margin
was 10bp wide of the 53bp spread National
Australia Bank paid the previous week,
while the 10-year came 5bp back of where
a new Aussie major 10-year would price,
according to a banker on the deal.
“Four to five years ago, the Kiwi majors
typically priced about 20bp–25bp wide
of their Australian parents across the US
curve,” he said.
› ASB SELLS THREE-YEAR BENCHMARKASB BANK (A1/AA–/AA–) sold a NZ$500m
(US$360m) three-year floating-rate note last
Tuesday, priced at the tight end of three-
month BKBM plus 70bp–73bp guidance.
CBA was sole lead manager.
This was 3bp tighter than the 70bp
margin paid on the last three-year trade
for one of New Zealand’s identically rated
major lenders, ANZ Bank New Zealand’s
NZ$375m print on December 15.› IBRD TAPS KAURI SWEET SPOTINTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT , the World Bank’s funding arm,
rated Aaa/AAA, raised NZ$700m from last
Thursday’s sale of five-year Kauri bonds.
The 3.0% February 2 2023s priced to yield
3.076%, 33bp wide of mid-swaps and 62.6bp
over the April 2023 NZGB.
ANZ , BNZ and CBA were joint lead
managers on the fourth supranational five-
year Kauri issue of the year.
On January 5, Nordic Investment Bank
raised NZ$400m at mid-swaps plus 35bp.
Asian Development Bank and Inter-
American Development Bank paid 34bp
mid-swap margins for their respective
NZ$500m and NZ$375m prints on January 9
and January 12.PHILIPPINES
DEBT CAPITAL MARKETS
› SM PRIME EYES FIXED-RATE ISSUEProperty developer SM PRIME HOLDINGS plans
to sell five-year and seven-year fixed-
rate bonds, according to a filing to the
Philippine Stock Exchange.
SMPH has filed to the Securities and
Exchange Commission a plan to sell fixed-
rate bonds of Ps15bn (US$298m), with an
oversubscription option of up to Ps5bn.
The offering is part of the company’s
Ps60bn shelf registration programme,
which the market regulator approved last
July.
PhilRatings has assigned a Aaa to the
bonds.EQUITY CAPITAL MARKETS
› BPI, METROBANK PLAN RIGHTSBANK OF THE PHILIPPINE ISLANDS and METROPOLITAN
BANK AND TRUST COMPANY are planning issues of
rights shares to raise a combined Ps110bnTop Glove seeks buy financing
Loans Glove maker taps debut M&A borrowingTOP GLOVE is seeking a US$310m dual-tranche
loan to fund the acquisition of a surgical glove
maker, according to sources and a company
stock exchange filing.
Citigroup is the sole coordinating and
underwriting bank for the debut acquisition
financing, which will be for the cash
component of the M$1.37bn (US$345m)
proposed purchase of Aspion, also from
Malaysia.
The Malaysian glove maker is acquiring
Aspion from Adventa Capital. The purchase
will make Top Glove one of the world’s largest
surgical glove makers, on top of being the
largest rubber glove manufacturer globally.
Besides the borrowing, Top Glove, listed in
Kuala Lumpur and Singapore, is also issuing
20,505,000 new shares on the Malaysian
stock exchange at M$6.6813 each to finance
the acquisition, the company has said.
The US$310m facility is split equally into a
two-year conventional term loan and a five-
year Islamic financing.
The conventional term loan carries a bulletmaturity and an interest margin of 82.5bp
over Libor for the first 12 months before
stepping up to 132.5bp from the 13th month.
The blended interest margin is 107.5bp over
Libor.
The Islamic tranche has an amortising
repayment with an average life of 3.5 years
and a profit rate of 125bp over Libor.
Citigroup has launched the loan into
limited syndication, seeking commitments on
a pro-rata basis across the two tranches.
Banks joining as mandated lead arrangers
and bookrunners earn upfront fees of 20bp
on the conventional portion and 30bp on the
Islamic piece for all-in pricing of 117.5bp and
133.57bp, respectively.
Commitments are due on or before
February 6. A bank meeting was held in Kuala
Lumpur last Friday.
Hong Leong Investment Bank is transaction
and principal adviser to Top Glove, while
Credit Suisse is the sole financial adviser to
Adventa Capital.
PRAKASH CHAKRAVARTI