Hong Leong Bank's debut senior bond scores record yield

Malaysian lender Hong Leong Bank last night priced a $300 million five-year senior bond the first US dollar senior bond from a Malaysian bank at a record yield.

With a dearth of high-grade Malaysian bank borrowers, Hong Leong’s debut senior bond clearly whetted investors’ appetite. Thanks to its rarity value, the deal priced well inside the guidance and, indeed, achieved the lowest-ever yield for a five-year US dollar issue from a Malaysian borrower. At 3.803%, it is even lower than the Malaysian sovereign’s $1.25 billion sukuk sold in May 2010, which paid a 3.93% yield.

Hong Leong is the sixth-largest lender in Malaysia by assets and part...