Exim Bank to begin selling RM1.6b bonds

Source From (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/5/25/business/11355778&sec=business

Published: Friday May 25, 2012

KUALA LUMPUR: Exim Bank Malaysia, a state-owned export finance company, began marketing as much as US$500mil (RM1.6bil) of dollar-denominated bonds in its first global offering, two people familiar with the matter said.
Nomura Holdings Inc, BNP Paribas SA, Malayan Banking Bhd and CIMB Holdings Bhd were hired to manage the sale, said the people who couldn’t be named as the details are private.
The US$500mil sale was part of Exim Bank’s US$1.5bil medium-term note programme, they said.
The Kuala Lumpur-based financial institution started marketing the bonds in Japan yesterday and will move on to Singapore, Hong Kong and London next week, said the people.
Mohd Nasir Johar, Exim Bank’s communications head, couldn’t be immediately reached for comment via mobile phone or e-mail.
Exim Bank is tapping the market to fund its overseas expansion as borrowing costs fall. Yields on Malaysia’s benchmark Islamic bonds due June 2021, one of three outstanding sovereign dollar notes in the Southeast Asian nation, have dropped 40 basis points, or 0.4 percentage point, to 3.9% this year, according to data compiled Bloomberg.
The Malaysian lender’s offering comes after Export-Import Bank of Korea sold a record 100 billion yen (US$1.3bil) of Samurai bonds last week.
Exim Bank Malaysia reported a net profit of RM176.3mil (US$56mil) for 2011 and aims to approve 28% more loans this year, The Star reported yesterday, citing chief executive officer Adissadikin Ali.
The bank approved RM4.7bil of loans last year and plans to expand to the Middle East and North Africa following rising enquiries from Malaysian companies operating in those countries, according to the report. — Bloomberg