Malayan Banking Berhad Maybank became the country’s first bank to raise dollar-denominated Basel III compliant capital on Friday with a $500 million 10.5- non-call 5.5-year deal.
The Reg S transaction brings welcome diversity to Malaysia’s credit universe, which has recently been long sukuk and corporate issuance and short conventional dollar and bank issuance.
However, the deal’s Basel III status meant it was not popular with domestic bank treasuries as it attracts full capital deductibility. As a result, the peak $2.6 billion order book did not have the traditional domestic bank investors underpinning many Malaysian deals although syndicate bankers said some participated.
The final order...