Kuala Lumpur: CIMB Bank Berhad (“CIMB Bank”) successfully launched and priced a USD350 million 5-year senior unsecured notes issuance (the “Notes”) under its USD1 billion Euro Medium Term Note Programme established on 27 January 2011 and updated on 24 April 2012 (the “Programme”). The Notes were priced at a spread of 190 bps over the 5-year US Treasury, equivalent to a yield of 2.505% p.a., with a coupon of 2.375%. The Notes will mature on 26 July 2017.
Rated A3 (stable) by Moody’s Investors Services, the Notes were successfully priced through an accelerated book building process on 19 July 2012 and at the tightest end of the price guidance. The transaction drew a demand in excess of USD1.2 billion into the books with the participation of over 70 accounts. At the yield of 2.505%, CIMB Bank has achieved the lowest five-year borrowing cost amongst its Malaysian banking peers to date.
The offering was met with demand from a wide array of investors and allocated to a global mix of asset managers, private banks and financial institutions. Asian investors accounted for 86% of the allocation with the balance 14% to European accounts.
“We are delighted with the strong response to our offering. This reflects the confidence of the global investment community in CIMB’s strong credit profile and liquidity position,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
"This deal also shows that the market environment remains very conducive for corporate issuers, including banks, in this region to tap the fixed income markets," he added.
The Notes will be listed on the Singapore Exchange Securities Trading Limited. CIMB Bank has also submitted an application to Bursa Malaysia Securities Berhad to list the Notes and the Programme under the Exempt Regime.
CIMB Bank (L) Limited, Citigroup Global Markets Limited and Deutsche Bank AG, Singapore Branch are the Joint Bookrunners for the Notes issuance.