HONG KONG: Malayan Banking Bhd
(Maybank), Malaysia’s biggest bank by assets, has launched a US$700mil (RM2.85bil) sale of US dollar bonds in two parts, according to an updated term sheet seen on Tuesday.
The offering comprises US$300mil of three-year floating-rate notes and US$400mil of five-year fixed-rate notes.
The three-year notes were priced at 60 basis points above the secured overnight financing rate or SOFR, a key US benchmark used to price loans and bonds, tighter than the initial price guidance of about 90 basis points.
The five-year notes were priced at 55 basis points (bps) above the yield on the five-year US Treasury note, tighter than the initial price guidance of about 80 bps.
The three-year notes will mature around Sept 15, 2029, while the five-year notes will mature on Sept 15, 2031.
The five-year notes carry a coupon of 5.09%.
Maybank plans to use the proceeds for working capital, general banking and other corporate purposes.
Citigroup, HSBC, Maybank and Wells Fargo Securities are the joint lead managers and bookrunners. — Reuters
