Issuer: Federation of Malaysia Deal: sovereign bond Amount: e650 million Date: November 24 2000 Bookrunners: Deutsche Bank, Barclays Capital Last November the Malaysian government issued the first euro-denominated bond out of Malaysia, which was only the second from an Asian sovereign - the Philippines came to the market in 1999. The five-year deal with a coupon of 6.375% was 2.5 times oversubscribed and increased from e500 million. Paul Smith, head of bond and loan syndicate in Asia at Deutsche Bank in Hong Kong, says the deal met “overwhelming investor demand from Europe” where 56% of the issue was sold. “Investors welcomed the opportunity to buy into scarce Asian sovereign debt and liked Malaysia’s credit story,” says Smith. Malaysia is one of the few countries that did not lose its investment-grade rating after the Asian crisis. And in October 2000 its foreign currency debt rating was upgraded from Baa2 to Baa3. The roadshow was particularly successful, says Smith, because the new budget was realized two days before, on October 27. The deal was executed flawlessly – and within only 24 hours – by Deutsche and Barclays Capital. |