Maybank issues US dollar-denominated bonds for SGX listing

Maybank issues US dollar-denominated bonds for SGX listing
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KUALA LUMPUR (April 9): Malayan Banking Bhd (Maybank) has issued US$28 million (about RM115.81 million) worth of bonds, which were listed today on the Singapore Exchange's (SGX) bond market.

In a filing with the SGX yesterday (April 8), Maybank said the notes, which were issued yesterday, would be due in 2028 and would pay an annual interest rate of 1.8%.

"The notes will be quoted and traded in US dollars," Maybank said, without specifying how proceeds from the bond sale will be used.

The lead managers and bookrunners of the notes are Maybank Kim Eng Securities Pte Ltd and The Hongkong and Shanghai Banking Corp Ltd, according to Maybank.

For comparison, Maybank's US$28 million bonds' annual coupon of 1.8% is higher than Malaysia's overnight policy rate (OPR) of 1.75%.

Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) on March 4, 2021 decided to maintain the country's OPR at 1.75%, the central bank said in a statement that day.

"The MPC considers the stance of monetary policy to be appropriate and accommodative," said BNM.

Among major corporate bond issuers, Petroliam Nasional Bhd (Petronas) said in a statement on March 17, 2021 that
Petronas had priced a US$600 million single-tranche seven-year note issued by its wholly-owned subsidiary Petronas Energy Canada Ltd (PECL) at 85 basis points over the seven-year US Treasury to yield 2.112% a year.

"Proceeds will be utilised by PECL to fund its continued development and production activities, debt refinancing and for general corporate purposes," Petronas said.

On Bursa Malaysia today, Maybank's share price rose two sen or 0.24% at 11.57am to RM8.30, which gives the group a market capitalisation of about RM93.29 billion.

Maybank has 11.24 billion issued shares, according to the group's latest quarterly financial report.

Chong Jin Hun