One of Malaysia's leading merchant banks, CIMB Moodys Baa3 Stable, Fitch BBB Stable, yesterday priced its inaugural tier 2 bond. At $100 million the deal was on the small side and leads Morgan Stanley and CIMB did well to counter the liquidity premium that such small deal usually demands.
The 10 year, non-call five deal was priced at 220bp over five year Treasuries, equating to a spread of 181bp over Libor. Initial market talk when the deal was launched on Friday suggested that it would have to pay around 205bp over Libor and so it came in 24bp tighter than expectations. It was structured as a Reg S, Eurobond and fees totalled...
