Export-Import Bank of Malaysia Berhad has issued a US dollar bond of USD350 million 5-year Senior Unsecured Notes, the Notes are issued off MEXIM’s USD3.0 billion Multicurrency Medium Term Note Programme.
This comes as the bank looks to take advantage of a steady market open in Asia with MEXIM announcing initial price guidance at T+90bps area for the Notes. MEXIM was able to compress the initial price guidance by 30bps and announce final price guidance at T+60bps area. The Notes were subsequently priced at T+60bps at a yield of 1.831%.
MEXIM’s offering was conducted on the back of a comprehensive global virtual investor roadshow conducted on 17 November 2021 following a mandate announcement on the day before.
The final order size amounted to over US$1.3 billion over 80 accounts (including US$100 million from the joint bookrunners), or an oversubscription rate of more than 3.7x of MEXIM’s target USD350 million issuance.
The Notes were allocated 13% to Malaysia, 84% to Asia ex-Malaysia and 3% to EMEA. By investor type, 52% was allocated to asset managers, 22% to bank treasuries, 13% to insurance and pension funds, 12% to public sector and the remaining 1% to private banks and other investors.
The Notes are expected to settle on 26 November 2021. Net proceeds will be used for MEXIM’s general banking and finance activities, working capital, as well as other corporate purposes. The Notes are expected to be rated A3 by Moody’s and will be listed on Singapore Exchange Securities Trading Limited and Labuan International Financial Exchange Inc.
Dato’ Azman Mahmud’s who was recently appointed as Chairman, added “MEXIM’s successful return to the international capital markets exemplifies the trust and support of international investors towards the strong credit fundamentals of MEXIM, as well as its role in continuing the recovery of the Malaysian economy, following the COVID-19 pandemic. As the only Development Financial Institution mandated by the Malaysian government to promote the development of cross-border ventures, the Bank’s role remains vital to facilitate the competitiveness of Malaysian institutions.”
The growing confidence can be seen when the bank successfully redeemed a USD500 million senior unsecured notes that were due in late October this year.
Norlela Sulaiman, MEXIM Chief Operating Officer, said “MEXIM was able to capitalise on an opportunistic market window available despite the volatile movement of the broader market environment. This underpins the confidence of international investors towards the integral mandated role of MEXIM in the country’s export-oriented economy.”
The Hongkong and Shanghai Banking Corporation acted as the Sole Global Coordinator, as well as one of the Joint Lead Managers together with CIMB Investment Bank Berhad, Citigroup Global Markets Limited and Standard Chartered Bank (Singapore) Limited (together, the “Joint Lead Managers”).
