Southern Bank debuts in dollars

One of Malaysia''s smallest banks issues its debut subordinated debt offering.

Southern Bank Berhad raised $200 million from a lower tier 2 deal yesterday Wednesday, pricing a 10 non-call five offering at the mid point of its indicative range.

With Goldman Sachs as lead manager, the group priced its Baa3BBB- rated deal at 99.028% on a coupon of 6.125% to yield 6.355%. This equated to 242.5bp over Treasuries, the mid point of a 240bp to 245bp range. On a Libor basis, the deal priced at 188bp over.

At this level, Southern Bank came about 5bp wide of Eon Bank on a like-for-like basis. Eon has a 5.375% $225 million deal due January 2014, trading yesterday...

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