Maybank IB, HSBC & Bank Of China Successfully Launch Cagamas' Tiger Emas Bond

KUALA LUMPUR, Sept 30 (Bernama) -- Maybank Investment Bank Bhd (Maybank IB), The Hongkong and Shanghai Banking Corp Ltd (HSBC) and the Bank of China Ltd (BOC) have launched Cagamas Bhd's inaugural three-year US$243.89 million (CNH1.5 billion) Tiger Emas Bond with a fixed coupon rate of 3.70 per cent per annum. The bonds were issued through Cagamas' newly established US$2.5 billion Conventional Multicurrency Medium Term Note Programme, which gives Cagamas the ability to issue bonds under a host of international currencies. Maybank IB, HSBC and BOC acted as the joint lead managers and joint bookrunners for this issuance. HSBC Bank Malaysia Bhd Group General Manager, Deputy Chairman and Chief Executive Officer Mukhtar Hussain said the deal marked a milestone in the Malaysian debt market as the first-ever non-ringgit issuance to be settled via real-time Electronic Transfer of Funds and Securities System. "We are very pleased that Cagamas was able to debut strongly and successfully launched the CNH bond issuance amid expectations of a continued robust September supply of CNH bonds particularly from other regular high-grade issuers," he said in a joint statement Monday. The Cagamas sale drew a strong orderbook of more than US$747.96 million (CNH4.6 billion), or an over-subscription rate of 3.1 times over the final issuance size of US$243.90 million (CNH1.5 billion). By geographical distribution, Asia collectively made up 91 per cent of the subscription, comprising Hong Kong (35 per cent), Singapore (29 per cent) and Malaysia (25 per cent), with the remaining from Europe. By investor type, the issuance was allocated to fund managers (72 per cent), banks (24 per cent), sovereigns (3.0 per cent) and others comprising private banks and corporates. Cagamas Bhd is the Malaysian national mortgage corporation. --BERNAMA