08  February 2012  - 18:39
Maybank Raises USD400 Million of Senior Unsecured Notes

Malayan Banking Berhad (“Maybank”) had on 3 February 2012 priced its USD400 million Regulation S senior unsecured notes (the “Senior Notes” or the “Transaction”) under its USD2.0 billion Multicurrency Medium Term Note Programme.

This is Maybank's first transaction in the USD bond markets since 2007 and the Senior Notes carry the lowest coupon by any Asia ex-Japan financial institution borrower since September 2010. Furthermore, Maybank priced inside the implied curve of its higher rated regional comparables reflecting the strong perceived value of Maybank's credit.

The Transaction was priced at 5-year US Treasury + 230 bps or a yield of 3.004% and carries a coupon of 3.000% per annum payable semi annually in arrears. The Senior Notes will have a tenor of 5 years, maturing on 10 February 2017. The Senior Notes are expected to be rated A- (Stable) by Standard and Poor's Ratings Services and A- (Stable) by Fitch Ratings.

The Transaction was allocated to high-quality investors and the five times oversubscribed order book was well diversified. In terms of geographical distribution, Asian investors were allocated 94% and European investors 6%. In terms of investors, Banks were allocated 41% of the issue, Insurance companies 26%, Asset Managers 14%, Private Banks 10% and Public Institutions 9%.

The proceeds from the Transaction will be used for working capital, general banking and other corporate purposes. The Senior Notes are expected to be listed on the Singapore Exchange Securities Trading Limited and the Labuan International Financial Exchange Inc.

“The strong order book and the fine pricing is a testimony of international investors' recognition of Maybank’s financial strength and support of our credit. Investors have responded enthusiastically to the opportunity to buy into our senior issuance and this exhibits confidence in our bank. The book size was robust with over USD 2 billion in orders drawn from a well diversified investor base.” says Dato’ Sri Abdul Wahid Omar, the President and Chief Executive Officer of Maybank.

Barclays Bank PLC and Maybank Investment Bank are Joint Lead Managers and Bookrunners for the Transaction.

Note:
This material is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). This material is not an offer of securities for sale into the United States, Canada or Japan. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("the Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the Securities Act), except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.