Malaysia's Lingui Development Berhard, who's activities include timber, oil palm and cocoa plantations, has announced that it is to launch a M$300 million ($78.9 million) domestic bond in April following approval from the Securities Commission. Aseambankers has won the mandate to arrange the deal with HSBC brought in as lead manager.
The company says proceeds from the transaction will go towards refinancing M$289 million of bank loans with the remainder used to finance working capital. Lingui adds that by using the Malaysian capital market as opposed to an international offering it can reduce exposure to foreign currency fluctuations.
The transaction, rated A3 by Rating Agency Malaysia, will be split into two M$150 million tranches of five and seven-year maturities. According to HSBC figures, the 2001 domestic yield curve shows average coupons of 4.4% for five year bonds and around 4.7%
The bonds will be offered in M$1 million denominations and the price has been set at par.
