Maybank issues inaugural RMB bonds in China interbank market

Maybank logo. Maybank is the largest bank and financial group with 401 domestic branches in Malaysia. P.Nathan/The Star

KUALA LUMPUR: Malayan Banking Bhd (Maybank) has made its first issuance of renminbi (RMB) bonds in the China interbank bond market amounting to 1 billion yuan (RM634.4mil) in nominal value.

In a filing with Bursa Malaysia, the country’s largest financial services group said the issuance on July 24 followed  the receipt of  People’s Bank of China’s approval  to issue RMB bonds of up to 6 billion yuan (RM3.8bil) in the republic’s interbank bond market.

These are to be issued in multiple tranches within two years from the date of approval.  

Maybank Investment Bank, on behalf of Maybank, had on June 30 lodged with the Securities Commission all required information and relevant documents relating to the RMB bonds.

The senior unsecured bonds issued have a three-year tenure with a 4.6% interest per year. These are rated AAA by China Chengxin International Credit Rating Co Ltd.

“The proceeds will be used for Maybank’s working capital, general banking and other corporate purposes,” the bank said.

“This includes utilising the proceeds both onshore and offshore to support activities in connection with the Belt and Road Initiatives, including but not limited to, financing of projects within Asia in various sectors such as the utilities, mining, oil and gas and petrochemical sectors.”

China Development Bank is the lead underwriter and bookrunner and HSBC Bank (China) Co Ltd is the joint lead underwriter for the issuance.