Telekom Malaysia launches roadshows

The government-owned telecommunications company is expected to secure tight pricing for its first international bond deal in five years.

Jackie Horne

November 21, 2000

Led by Deutsche Bank and Merrill Lynch, the BBB/Baa2-rated credit will begin roadshows in Hong Kong on Thursday for a $250 million euro-144a. The 10 year deal, which may be increased to $300 million subject to demand, will then be presented to investors in London and East Coast USA before pricing on November 30. There will also be four co-managers.

Bankers believe that the combined impact of the deal's small size and lack of supply from Asia should see the transaction price at a very slim premium to the sovereign's outstanding 2009 line, currently trading at a bid/offer spread of 228bp/220bp over Treasuries. Telekom itself has an outstanding 2005 bond at 200bp/190bp over, which puts the company at a roughly 15bp premium to implied levels for a Malaysia 2005 at 185bp over.

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