Thursday 28 Mar 2024
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KUALA LUMPUR (May 5): CIMB Bank Bhd (CIMB Bank), in which CIMB Group Bhd holds a 99.9% equity stake, has successfully completed the inaugural issuance of US$313 million (approximately RM1.129 billion) 30 years callable zero coupon notes today.

In a press statement today, CIMB Bank said the landmark issuance is to be listed on the Taipei Exchange (GreTai Securities Market) and the Bursa Malaysia (Exchange Regime).

It was CIMB Bank's maiden issuance in the Taiwanese market, also known as the Formosa Bond Markets.

According to the banking group, the deal saw healthy demand from onshore investors across multiple accounts, culminating in a peak of total orders exceeding US$480 million (RM1.73 billion), 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, the bank said.

"CIMB is constantly on the lookout for opportunities to tap the global markets and take advantage of attractive funding costs and diversify its investor base," said CIMB Group Treasury and Markets Group Head Chu Kok Wei.

"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," he added.

KGI Securities Co Ltd and Taipei Fubon Commercial Bank Co Ltd acted as joint lead managers for this issuance with CIMB Investment Bank Bhd (CIMB Investment Bank) as the global coordinator.

The issuance was made from CIMB Bank's existing US$5 billion (RM18.04 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.

Shares in CIMB Group share price eased one sen or 0.17% to close at RM5.89, for a market capitalisation of RM50.09 billion.

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