Malaysia prices Asia's largest euro offering

The Federation of Malaysia has made a rare foray into the international bond markets, pricing a first euro-denominated offering yesterday (Thursday).

Led by Barclays Capital and Deutsche Bank, an Eu500 Million $428 million five year deal was increased to Eu650 million on the back of a strong order book, which was all but closed after demand topped the Eu1.25 billion mark.

Priced at 99.510%, the deal pays an annual coupon of 6.37% to yield 102bp over the mid euribor swap rate. Co-managers, receiving no bonds under the pot system used to distribute the deal, comprise ABN AMRO, CIMB, Dresdner, HSBC, JP Morgan and Salomon Smith Barney. Fees total 35 cents.

Compared to Malaysia's dollar spreads against which it will be judged, the transaction has come at a premium of up...

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