Malaysia's Maybank raises $700M in dual-tranche dollar bond sale
What's the deal? Malayan Banking BhdDealroom has a profile for this one. Try Dealroom → (MaybankDealroom has a profile for this one. Try Dealroom →), Malaysia's biggest bank by assets, has raised $700 million through a two-part US dollar bond sale, according to an updated term sheet. The offering comprises $300 million of three-year floating-rate notes and $400 million of five-year fixed-rate notes.
The terms: The three-year notes priced at 60 basis points above the Secured Overnight Financing Rate (SOFR), tighter than initial guidance of about 90 basis points. The five-year notes priced at 55 basis points above the five-year US Treasury yield, versus initial guidance of about 80 basis points, and carry a coupon of 5.088%.
Why now? The tighter-than-expected pricing points to strong investor demand, letting Maybank lower its borrowing costs on both tranches.
What's the endgame? Maybank plans to use the proceeds for working capital, general banking, and other corporate purposes. The three-year notes mature around September 15, 2029, while the five-year notes mature September 15, 2031.
CitigroupDealroom has a profile for this one. Try Dealroom →, HSBCDealroom has a profile for this one. Try Dealroom →, Maybank, and Wells Fargo SecuritiesDealroom has a profile for this one. Try Dealroom → are joint lead managers and bookrunners on the deal.
The signal: At $700 million, the raise sits among the larger dollar bond deals from Southeast Asian issuers, and the pricing compression signals that global investors remain willing to lend to top regional banks on favourable terms.
Read more: theedgemalaysia.com
Image credit: Andy_Mitchell_UK
