KUALA LUMPUR: CIMB Bank Bhd has completed the inaugural issuance of its US$313 million (RM1.13 billion) 30 years’ callable zero coupon notes.

In a statement yesterday, CIMB Bank said the landmark issuance is to be listed on the Taipei Exchange (GreTai Securities Market) and Bursa Malaysia (Exchange Regime).It was CIMB Bank’s maiden issuance in the Taiwanese market, also known as the Formosa Bond Markets.

According to CIMB Group Holdings Bhd, the deal saw healthy demand from onshore investors across multiple accounts, culminating in total orders exceeding US$480 million, allowing the deal to eventually be priced at 4.5%.

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 Group treasury and markets group head Chu Kok Wei said, “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 relatively competitive pricing, while also serving to diversify our investor base and profile ourselves in the Taiwanese market.”

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

The issuance was made from CIMB Bank’s existing US$5 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.

This article first appeared in The Edge Financial Daily, on May 6, 2015.