9 March 2021
Cements leadership in innovation and market share for Ringgit bonds amid difficult market conditions
Kuala Lumpur: CIMB Investment Bank Berhad (“CIMB”) has been named Malaysia Bond House of the year in the IFR Asia Awards 2020, in recognition of its outstanding performance in a series of complex and innovative debt financing deals and continued leadership in the Ringgit bond market. Additionally, CIMB received the Malaysia Capital Markets Deal accolade for its role as joint global coordinator and joint bookrunner for MR D.I.Y. Group (M) Berhad’s (“MR D.I.Y.”) RM1.5 billion initial public offering (“IPO”).
CIMB dominated the MYR bonds league table during the IFR awards period, with a 30% share of the Malaysian ringgit bond market, underwriting RM30.4 billion (US$7.5 billion) of new issues, according to Refinitiv data.
Jefferi Hashim, Chief Executive Officer, CIMB Investment Bank said, “We are honoured to be recognised as the leading bond house in Malaysia for 2020 by IFR Asia, and would like to thank our clients for the trust they continue to place in CIMB. We are especially grateful to have been able to support our clients effectively during a particularly difficult year. We will continue to go the extra mile for them, drawing on the strengths and expertise of the CIMB team to create solutions that meet our clients’ unique funding needs."
According to IFR Asia, innovative deals by CIMB this year included Top Glove’s RM1.3 billion perpetual non-call five Islamic bond, a subordinated sukuk that helped to take advantage of surging global interest in the glove manufacturer. The deal was priced at 3.95% - the lowest yield or profit rate for any ringgit-denominated perpetual outside the banking sector. CIMB also arranged the RM1.7 billion multi-tranche sukuk for first-time issuer Pengerang LNG 2, quickly pricing the deal just one month after establishing the programme. The final order book stood at RM5.14 billion, allowing the issuer to achieve pricing tightening of 15bp-23bp from the initial guidance across 20 tranches.
Starbright Capital’s RM665 million multi-tranche asset-backed bond from December 2019 was another innovative offering, being Malaysia’s first securitisation of receivables arising from the restructuring of the water sector in the State of Selangor. The nine tranches, matching annual payment obligations, created a benchmark yield curve for subsequent asset backed securities from the utilities sector.
Malaysia Capital Markets Deal - MR D.I.Y. RM1.5 billion IPO
Overcoming uncertainty during the COVID-19 crisis, home improvement retailer MR D.I.Y. revived international interest in Malaysian listings in October with the country’s largest IPO in three years. Underwriters successfully positioned the stock as a COVID-resilient play in the Southeast Asian retail market, underpinned by its strong operations supporting its growth. Investors were well rewarded with the stock gaining 88% by the end of the year. In total, 942m shares were sold at a fixed price of RM1.60, raising RM1.5 billion, where investors included high-profile global and domestic funds such as AIA, Employees Provident Fund, Permodalan Nasional Berhad, Aberdeen Standard, BlackRock, Eastspring Investments, Fidelity, JP Morgan Asset Management, Matthews, Pictet and Trinity Alps.