HSBC arranges M$445 million bonds to build coal terminal

Lekir Bulk Terminal (LBT) has raised M$445 million ($117 million) via structured project bonds to finance a M$310 million jetty terminal in Lumut in the Malysian state of Perak. The bonds, rated AA3(s) by Rating Agency Malaysia (RAM), have a zero coupon and will be repaid in 19 semi-annual instalments between 2003 and 2012. The aggregate average yield on the bonds is around 8%, ranging from 6.20% at the short end to 8.65% for the longer maturities.