Page 137 - Official Year Book 2019
P. 137
GOVERNMENT OF MALAYSIA SUCCESSFULLY
PRICES ITS ¥200 BILLION (RM7.3 BILLION) SAMURAI
BOND AT THE FULL COST OF 0.63% P.A. FOR A TENURE
OF 10 YEARS
On 8 March 2019, the Government of Malaysia (“GOM”) successfully
priced its ¥200 Billion (RM7.3 Billion) 10-year Japan Bank for International
Cooperation (JBIC) Guaranteed Samurai Bond at the full cost of 0.63% p.a.
to GOM. This marks the Government’s return to the Japanese Yen Bond
market after a 30-year absence. This will be the largest JBIC-guaranteed
sovereign bond issuance in the market.
The issuance process commenced with a 2-day investor roadshow in Tokyo
on the 7th and 8th of February 2019, which was led by the Finance Minister
of Malaysia, YB Lim Guan Eng. This was followed by an official marketing
exercise from the 4th until the 7th of March 2019. During the engagement
period, investors expressed strong interest towards the issuance and this
reflected their confidence towards Malaysia’s stable macroeconomic
fundamentals, governance and structural reforms. As a result, the issuance
has been received extremely well across the investor spectrum and picked
up by quality Japanese investors. These investors are specialized banks
(37.9%), city banks (35%), life insurance companies (13.9%), regional banks
(6.5%), shinkin banks (3.8%) and others (2.9%).
The opportunity offered by the Japanese Government for GOM to tap into
the Samurai bond market further enhances Malaysia’s position as a leading
investment hub within the region, while diversifying its stable funding
base. Mizuho Bank, HSBC Malaysia and Daiwa Securities in collaboration
with Affin Hwang Investment Bank acted as Joint Lead Arrangers and
Bookrunners for this issuance. The Ministry of Finance wishes to thank
the Japanese Government and the Japanese ambassador to Malaysia for
facilitating the Samurai bond issuance to its successful completion.
MALAYSIA BAHARU 2019 Official Year Book 125
PRICES ITS ¥200 BILLION (RM7.3 BILLION) SAMURAI
BOND AT THE FULL COST OF 0.63% P.A. FOR A TENURE
OF 10 YEARS
On 8 March 2019, the Government of Malaysia (“GOM”) successfully
priced its ¥200 Billion (RM7.3 Billion) 10-year Japan Bank for International
Cooperation (JBIC) Guaranteed Samurai Bond at the full cost of 0.63% p.a.
to GOM. This marks the Government’s return to the Japanese Yen Bond
market after a 30-year absence. This will be the largest JBIC-guaranteed
sovereign bond issuance in the market.
The issuance process commenced with a 2-day investor roadshow in Tokyo
on the 7th and 8th of February 2019, which was led by the Finance Minister
of Malaysia, YB Lim Guan Eng. This was followed by an official marketing
exercise from the 4th until the 7th of March 2019. During the engagement
period, investors expressed strong interest towards the issuance and this
reflected their confidence towards Malaysia’s stable macroeconomic
fundamentals, governance and structural reforms. As a result, the issuance
has been received extremely well across the investor spectrum and picked
up by quality Japanese investors. These investors are specialized banks
(37.9%), city banks (35%), life insurance companies (13.9%), regional banks
(6.5%), shinkin banks (3.8%) and others (2.9%).
The opportunity offered by the Japanese Government for GOM to tap into
the Samurai bond market further enhances Malaysia’s position as a leading
investment hub within the region, while diversifying its stable funding
base. Mizuho Bank, HSBC Malaysia and Daiwa Securities in collaboration
with Affin Hwang Investment Bank acted as Joint Lead Arrangers and
Bookrunners for this issuance. The Ministry of Finance wishes to thank
the Japanese Government and the Japanese ambassador to Malaysia for
facilitating the Samurai bond issuance to its successful completion.
MALAYSIA BAHARU 2019 Official Year Book 125
