CIMB raises $1.09 billion from upsized placement

The tightly priced deal receives strong support from the Malaysian bank’s existing shareholders despite requiring investors to shoulder quite a lot of market risk.

Malaysia’s CIMB Group has raised M$3.55 billion $1.09 billion from a follow-on share sale that was upsized in full and priced at a very tight discount. The deal is the bank’s first fundraising through the equity capital markets since it listed in 2003 and the largest equity deal in Asia ex-Japan so far this year.

The key reason for the transaction, according to a CIMB announcement, is to strengthen the bank’s capital position and to ensure that it has enough funds to continue to grow. One term sheet noted that some of the proceeds will be injected into the bank’s operating subsidiaries to support further growth, while some will be...

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