CIMB Bank Completes US$313 Million 30 Years Callable Zero Coupon Notes

Kuala Lumpur: CIMB Bank Berhad (“CIMB Bank”), a 99.9% subsidiary of CIMB Group Holdings Berhad, has today successfully completed the inaugural issuance of US$313 million 30 years callable zero coupon notes. The landmark issuance, to be listed on the Taipei Exchange (GreTai Securities Market) and the Bursa Malaysia (Exchange Regime), is CIMB Bank’s maiden issuance in the Taiwanese market, also known as the Formosa Bond Markets.

The deal saw healthy demand from onshore investors across multiple accounts, culminating in a peak of total orders exceeding US$480 million, allowing the deal to eventually be priced at 4.50%. The attractive yield attained reflected investors’ confidence in the credit and financial position of CIMB Bank, an encouraging feat given that CIMB Bank was a new name to most of the Taiwanese investors.

“CIMB is constantly on the look out for opportunities to tap the global markets and take advantage of attractive funding costs and diversify its investor base. The Formosa bonds market, as a burgeoning market place for the issuance of global bonds, allowed CIMB to access the Taiwanese debt capital markets at a relatively competitive pricing, while also serving to diversify our investor base and profile ourselves in the Taiwanese market,” said Chu Kok Wei, Group Head, Treasury and Markets, CIMB Group.

KGI Securities Co. Ltd and Taipei Fubon Commercial Bank Co. Ltd acted as joint lead managers for this issuance with CIMB Investment Bank Berhad (“CIMB Investment”) as the global coordinator. The issuance was made from CIMB Bank’s existing US$5.0 billion Euro Medium Term Notes (EMTN) Programme which was established in August 2014, with CIMB Investment acting as the sole arranger for the EMTN Programme.