Malaysia’s largest companies are storming back into capital markets
Two of Malaysia’s largest companies are storming back into capital markets after a drought in offerings.
Petronas, the state energy group, has just sold the biggest Asian international corporate bond issue since 2003 while Maxis, Malaysia’s leading mobile operator, is considering an initial public offering that could be among the biggest in south-east Asia this year.
The $4.5bn global bond offering by Petronas included a $3bn, 10-year conventional issue and a $1.5bn five-year Islamic bond, that was the largest international sukuk denominated in US dollars since a $1.5bn Dubai Ports issue in 2007. Both tranches were priced at 162.5 basis points above US Treasuries with similar maturity. Citigroup, Morgan Stanley and CIMB, a Malaysian investment bank, were the bookrunners on the deal.
Strong interest in the issue, with a global order book of about $19bn, could lead to a revival in sukuk offerings after a slowdown last year due to the global financial crisis. Some 60 per cent of the Petronas sukuk issue was sold in Asia, 34 per cent in Europe and 6 per cent in the US
Malaysia has the world’s largest sukuk market. And according to Bloomberg data, Islamic issues in Malaysia amounted to M$18bn ($5bn) this year.
Petronas is expected to use the funds for offshore exploration and development of oil and gas fields near Malaysian territory on the island of Borneo.
There has been increased investor appetite for bond offerings by Asian state energy groups on expectations of a recovery in economic growth in the region.
