The debut RM500 million ($ 106 million ) Basel III- compliant Tier 2 subordinated Islamic medium term notes ( Tier 2 Sukuk Wakalah ) has been successfully priced by United Overseas Bank ( Malaysia ) ( UOB Malaysia ).
The first people Level 2 Sukuk transaction to be issued by a foreign-owned banks on January 23 was the Malay ringgit business.
More than 40 investors participated in UOB Malaysia’s successful debut in the sukuk business with the tightest spread for a Baht Level 2 transaction, according to William Chua, managing producer, loan capital markets, investment banking, group retail banking, at CIMB.
One of the mutual direct managers for the transaction was UOB, who also served as the transaction’s shared lead manager.
According to a media release, this deal was timed to catch the window when the “market is beneficial with sufficient liquidity” is early in the year.  ,
The Level 2 Sukuk Wakalah is rated AA1, whereas the Tier 1 UOB Malaysia is rated AAA with a robust prospect from RAM.  ,
More than 72 members from 38 different organizations from across the investing area attended the owners ‘ conference on January 10 to support this agreement.  ,
According to the transfer, the transaction was book-built with the deal size being beforehand announced to increase demand, which accelerated the identification of the actual interest and optimal pricing levels.
With a final order book of RM1.7 billion, which registered 3.39 times cover, UOB Malaysia was able to close the book at 4.01 %, the tightest end of the initial price guidance ( IPG).  ,
Insurance at 25 %, asset management at 58 %, private banks at 2 %, banks at 11 %, and other corporations at 4 % were among the distribution partners for the issuance.
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