Alliance Bank Malaysia, formed as one of the country's ten anchor banks following restructuring in the banking system, has launched a subordinated fixed rate bond offering via Deutsche Bank.
The M$535 million $140.8 million issue has a maturity of ten years, with a step up after the fifth year, and was rated A3 by Rating Agency of Malaysia, one notch below the bank's long term-rating. It priced at par and carries a 7.75% coupon, 250 basis points over swaps, says an official at Deutsche.
According to the lead manager, the deal was the largest ever sub-debt bond issued into the single-A market. It was oversubscribed by 1.25 times, with considerable pick-up from pension...
