Malaysia to launch dollar benchmark on Thursday

With its SEC filing now effective, the sovereign is to launch a $750 million deal on Thursday, forsaking new roadshows.

Jackie Horne

June 20, 2001

Backed by lead managers JPMorgan and Salomon Smith Barney, the 10 year deal will price on Friday after books have been left open for one day through the Asian, European and US time zones. It is a strategy designed to take advantage of any spread momentum following tonight's (Tuesday) FOMC meeting and an expected 25bp to 50bp cut in the Federal Funds rate on Wednesday.

The strategy also closely mirrors Malaysia’s last outing to the dollar-denominated sector in September 2000, when Chase surprised the whole market by suddenly re-opening the sovereign's outstanding 2009 bond and raising a further $500 million. This time round, the government will open books at $750 million and subject to demand, may increase the deal to 2001's full $1 billion overseas borrowing quota.

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