Lead managers Morgan Stanley and CIMB priced a $300 million debut subordinated debt issue for Bumiputra-Commerce Bank Berhad BCB yesterday Wednesday. The lower tier 2 deal has the standard 10 non-call five maturity and was priced on a coupon of 5.125% to yield 5.182%, equating to 205bp over five-year treasuries or 160bp over Libor.
This was the tightest end of a revised price range of 165bp to 170bp over Libor. At this level, the Baa2BBB- Fitch rated deal priced about 2bp to 3bp tighter than RHB Bank on a like-for-like basis.
RHB has a January 2008 lower tier 2 deal outstanding that was trading at about 170bp...
