The Export-Import Bank of Malaysia (Mexim) has returned to the international capital markets after an absence of five years, pricing on November 18 a US$350 million bond offering as it took advantage of an opportunistic issuance window.

The Reg S five-year deal was priced with a yield of 1.831% – or equivalent to a spread of 60bp over the US treasuries. This was in line with the final price guidance and 30bp tighter than the initial price range of 90bp area.

Mexim’s rare offering provides diversification to investors. It was executed on the back of a comprehensive global virtual investor roadshow conducted on November 17 following a mandate announcement the day before.

Taking advantage of a steady market opening in Asia on the morning of November 18, Mexim announced the deal with an initial price guidance of 90bp area over the US treasuries. The deal was eventually 3.7x oversubscribed as it attracted a final order book of US$1.3 billion from over 80 accounts.

In terms of geographic distribution, 97% of the bonds were distributed in Asia, including 13% in Malaysia, and 3% in EMEA. By type of investors, asset managers accounted for 52%, bank treasuries 22%, insurance companies and pension funds 13%, public sector 12%, and private banks and other investors 1%.

Commenting on the transaction, Mexim chairman Dato Azman Mahmud says the deal exemplifies the trust and support of international investors towards the strong credit fundamentals of Mexim and on its role in the continuing recovery of the Malaysian economy following the Covid-19 pandemic.

Mexim chief operating officer Norlela Sulaiman adds the bank was able to capitalize on an opportunistic market window available despite the volatile movement of the broader market environment.

The bonds were issued under Mexim’s US$3 billion multi-currency medium-term note programme. Proceeds will be used for the bank’s general banking and finance activities, working capital and other corporate purposes. HSBC was the sole global coordinator for the transaction, as well as a joint lead manager along with CIMB, Citi and Standard Chartered.

Mexim last tapped the US dollar bond market in October 2016, pricing a five-year deal amounting to US$500 million. Before that, it became the first export-import bank in the world to price a US dollar sukuk in February 2014 amounting to US$300 million, also for five years.