Malaysia picks Mizuho, HSBC and Daiwa for US$1.83b Samurai bond
Finance Minister Lim Guan Eng said on Friday the appointment was a result of six proposals that were shortlisted from 27 that were received by the ministry by Nov 2 last year.
PUTRAJAYA: The government has appointed three banks as the joint lead arrangers to raise up to 200bil yen (RM7.527bil or US$1.83bil) Samurai bond in Japan.
The banks are Mizuho Bank (Malaysia) Bhd, HSBC Bank Malaysia Bhd and Daiwa Capital Markets Ltd (in partnership with Affin Hwang Investment Bank).
The banks are Mizuho Bank (Malaysia) Bhd, HSBC Bank Malaysia Bhd and Daiwa Capital Markets Ltd (in partnership with Affin Hwang Investment Bank).
Finance Minister Lim Guan Eng said on Friday the appointment was a result of six proposals that were shortlisted from 27 that were received by the ministry by Nov 2 last year.
"The final decision was made after the ministry was convinced that these three were the best institutions which have the necessary experience, expertise and most importantly, conviction and faith in the Malaysian economy to ensure that we will enjoy the lowest possible cost of funds.
"The bond is expected to be raised in the next few months. I have been directed by Tun Dr Mahathir Mohamad, in my capacity as the Finance Minister, to handle the entire bond issuance and lead a Malaysian delegation to Tokyo next month to meet all the relevant investors to ensure a successful bond-raising exercise," he said here.
As part of a government-to-government arrangement, the Japan Bank of International Cooperation (JBIC) will be guaranteeing the bond.
This will allow the Malaysian government to pay all-inclusive indicative coupon rates of less than 0.65% per annum.
Prime Minister Dr Mahathir had said that the proceeds from the Samurai bond will be used to retire some of the costly loans taken by the previous government.
During his visit to Japan in June last year, Dr Mahathir has asked Japan to extend its yen credit in the form of soft loans, some of which may be used to retire old loans to offset high borrowing costs.
"The final decision was made after the ministry was convinced that these three were the best institutions which have the necessary experience, expertise and most importantly, conviction and faith in the Malaysian economy to ensure that we will enjoy the lowest possible cost of funds.
"The bond is expected to be raised in the next few months. I have been directed by Tun Dr Mahathir Mohamad, in my capacity as the Finance Minister, to handle the entire bond issuance and lead a Malaysian delegation to Tokyo next month to meet all the relevant investors to ensure a successful bond-raising exercise," he said here.
As part of a government-to-government arrangement, the Japan Bank of International Cooperation (JBIC) will be guaranteeing the bond.
This will allow the Malaysian government to pay all-inclusive indicative coupon rates of less than 0.65% per annum.
Prime Minister Dr Mahathir had said that the proceeds from the Samurai bond will be used to retire some of the costly loans taken by the previous government.
During his visit to Japan in June last year, Dr Mahathir has asked Japan to extend its yen credit in the form of soft loans, some of which may be used to retire old loans to offset high borrowing costs.
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