The First and Largest Ringgit Debt Securities Issuance by Petrochemical Player Receives Overwhelming Response
KUALA LUMPUR, October 1, 2004 - Aseambankers Malaysia Berhad (Aseambankers), HSBC Bank Malaysia Berhad (HSBC) and Malayan Banking Berhad (Maybank) are pleased to announce the settlement/issuance date for the RM1,270 Million nominal value Al Bai Bithaman Ajil Islamic Debt Securities (BaIDS) for the OPTIMAL Group of Companies on 29 September 2004 following the successful book building exercise and pricing for the issuance comprising of:
- OPTIMAL OLEFINS (MALAYSIA) SDN BHD (OPTIMAL OLEFINS) RM250.0 Million BaIDS;
- OPTIMAL GLYCOLS (MALAYSIA) SDN BHD (OPTIMAL GLYCOLS) RM453.0 Million BaIDS; and
- OPTIMAL CHEMICALS (MALAYSIA) SDN BHD (OPTIMAL CHEMICALS)
RM567.0 Million BaIDS,
Proceeds from the exercise will be utilized by the OPTIMAL Group of Companies to refinance its existing shareholders' loans and outstanding bank loan facilities, which were utilized earlier to repay the shareholders' loans. The shareholders' loans were extended to the OPTIMAL Group of Companies for the construction of a world class integrated petrochemical complex in Kertih, Terengganu.
The BaIDS have received overwhelming response with total orders of RM5.8 billion, approximately 4.6 times the issue size. The BaIDS which are project finance in nature, were awarded the strongest credit rating of AAA(ID) by Malaysian Rating Corporation Berhad due to the financial soundness of the OPTIMAL Group of Companies and the inherent strength of its parent companies; PETRONAS and The Dow Chemical Company of the US.
Being the first and largest Ringgit debt securities issued by a petrochemical based company, the issues have also established a new benchmark pricing for corporate debt securities. The issues were well distributed across a diverse investor base ranging from fund managers, insurance companies, financial institutions, government agencies and corporates. The RM1.27 billon BaIDS is the largest domestic private debt securities transaction carried out by way of a book building exercise, managed by Aseambankers Malaysia Berhad, HSBC Bank Malaysia Berhad and Malayan Banking Berhad as Joint Bookrunners for the issuance. Aseambankers Malaysia Berhad is the facility agent for the BaIDS.
About Aseambankers Malaysia Berhad
Acknowledged as one of Malaysia's premier investment bank, Aseambankers has received numerous recognition in the Malaysian debt capital market. It has to date been named Best at Islamic Bonds by Euromoney Islamic Finance Award 2002 and more recently awarded the Islamic Banking Awards 2003 for Best Islamic Wholesale Financial Services Provider by Euromoney.
This year, Aseambankers launched the first domestic charge card securitization transaction for Diners Club, achieving a milestone in the domestic Asset-Backed Securitization market. Other prominent debt market transactions successfully concluded are a wholesale securitisation for Aldwich Berhad, and Istisna' programme for SKS Power Sdn Bhd, a Medium Term Note programme for YTL Corporation Berhad and guaranteed bond issuance for Boustead Holdings Berhad.
About HSBC Bank Malaysia Berhad
HSBC Bank Malaysia Berhad has a strong presence in the Malaysian debt capital market and our dominant position is evidenced by our ranking as the number one Foreign Bank Debt Underwriter in Malaysia for the first half of 2004 and in 2003 by Bloomberg. We were also voted the Best Bank and Best Debt House in 2003 by the Asset Asia Awards.
We are an acknowledged provider of innovative debt finance solutions, having spearheaded the book-building syndication strategy in the Malaysian debt capital market.
HSBC is also a pioneer of Islamic debt securities, having sole lead managed the multi-award winning first Islamic Global Securities in the world for the Government of Malaysia. HSBC replicated this success again by sole lead managing Malaysia’s first globally Syariah-compliant domestic debt issue for Ingress Sukuk Berhad.
Our other notable transactions successfully concluded by HSBC include Sime Darby's RM500m Islamic MTN which was named the Bond Deal of the year in 2003 (IFR Review), YTL Corporation Berhad's RM500m MTN, and Guthrie Property Holdings Berhad's RM400m Islamic MTN.
HSBC Bank Malaysia Berhad is a wholly-owned subsidiary of HSBC Holdings plc. Headquartered in London, HSBC is one of the largest banking and financial service organizations in the world. As at 30 June 2004, HSBC had assets of USD1,154 billion. The HSBC Group has about 10,000 offices in 76 countries in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
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