KUALA LUMPUR (March 15): Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has completed its book building exercise for RM600 million Government guaranteed Islamic medium-term notes (IMTNs).

SME Bank said in the statement that the book building exercise was completed today with the IMTNs having tenures of five years and seven years, and its final pricing ranging from 4.03% to 4.10%.

SME Bank added that it had managed to secure investors to close the exercise between 45 basis points (bps) and 31 bps above Malaysian Government Securities (MGS), within the mid-range of the pricing guidance for such securities.

It added that interest from financial institutions and asset management firms amount to a total bid-to-cover ratio of over three times or RM1.83 billion of the final order over the issuance size.

“This reflects strong market confidence in SME Bank’s digital and technology transformation plan as part of its mandate to nurture, develop and serve the SMEs in Malaysia in a more holistic and effective manner in embracing Industrial Revolution 4.0,” said the bank.

It added that the joint lead managers for the transaction are AmInvestment Bank Bhd, Kuwait Finance House (M) Bhd and Maybank Investment Bank Bhd.

SME Bank is wholly owned by the Ministry of Finance and it is regulated by Bank Negara Malaysia. However, it reports to the Entrepreneur Development Ministry.