KUALA LUMPUR (Nov 19): Export-Import Bank of Malaysia Bhd (Exim Bank of Malaysia or MEXIM) has priced a US dollar bond offering of US$350 million (about RM1.46 billion) five-year senior unsecured notes at a US Treasury rate plus 60 basis points (bps) with a yield of 1.831% in its return to international capital markets.

The notes were issued off MEXIM's US$3 billion multicurrency medium-term note programme, the bank announced in a statement on Friday (Nov 19).

According to MEXIM, the offering was conducted on the back of a comprehensive global virtual investor roadshow held on Nov 17 following a mandate announced the day before.

The notes had an initial price guidance of T+90bps, but MEXIM was able to compress it by 30bps, said the bank.

According to MEXIM, 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 3.7 times MEXIM’s target US$350 million issuance.

The bank added that 13% of the notes were allocated to Malaysia, while 84% were allocated to Asia ex-Malaysia, and the remaining 3% were allocated to Europe, the Middle East and Africa (EMEA).

By investor type, 52% were allocated to asset managers, followed by 22% to bank treasuries, 13% to insurance and pension funds, 12% to the public sector and the remaining 1% to private banks and other investors, according to MEXIM.

“The notes are expected to settle on Nov 26, 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 Ltd and Labuan International Financial Exchange Inc,” the bank said.

Datuk Azman Mahmud, who was recently appointed the chairman of MEXIM, said the bank's successful return to international capital markets exemplifies the trust and support of international investors towards the strong credit fundamentals of the bank, 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,” he said.

MEXIM added that it had successfully redeemed its US$500 million senior unsecured notes that were due in late October this year, reflecting growing confidence in the bank.

The bank’s chief operating officer Norlela Sulaiman said MEXIM was able to capitalise on the 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,” she said. 

MEXIM said the Hongkong and Shanghai Banking Corporation (HSBC) acted as the sole global coordinator as well as one of the joint lead managers, together with CIMB Investment Bank Bhd, Citigroup Global Markets Ltd and Standard Chartered Bank (Singapore) Ltd.