This article first appeared in The Edge Financial Daily on November 8, 2017

KUALA LUMPUR: Citibank, which has raised over US$3 billion (RM12.7 billion) of funds for Malaysian companies from the international debt capital markets this year, said there is strong demand for Malaysian credit from global investors.

In a statement yesterday, it said Press Metal Aluminium Holdings Bhd, the largest integrated aluminium producer in Southeast Asia, successfully priced a US$400 million non-investment grade bond — the first such offering from the country in over a decade — in October. Citi was the joint book runner for the deal.

The leading underwriter for international bonds issuance from Malaysia this year, Citi said the strong response it has seen from global investors had led to a final order book of over US$3.8 billion and resulted in a final pricing which was 45 basis points lower than the initial price guidance of 5.25%.

The allocation was spread out to a diverse group of investors, comprising asset management companies and financial institution across Asia and Europe, with participation from 240 accounts.

“The large foreign investor interest in this issuance out of Malaysia reflects the amount of liquidity and the strong demand for Malaysian credit from global investors. The transaction underlined the potential for more Malaysian companies to raise cost-effective financing from international capital markets,” said Citi Malaysia chief executive officer Lee Lung Nien.

Lee added that Citi played to its strengths in leveraging its global network and local capabilities to help distribute international Malaysian bonds and offer clients leading advisory and value creating propositions that clearly demonstrated Citi’s ability to exceed client expectations even in a volatile market environment.

“The growth we see in Malaysia augurs well for the future. Citi has over five decades built a strong franchise through reliable and trusted partnerships for our clients and we are confident that we will see further issuance from the country,” Lee said.

Malaysia is among Citi’s largest markets in Asean. Citi’s businesses in the Asia-Pacific region, meanwhile, is the largest contributor to revenue and net income outside of North America.