Khazanah Nasional Berhad completed Malaysia's largest ever equity-linked deal yesterday December 15 with a $414.5 million exchangeable into PLUS Expressways. Under the lead management of CIMB and JPMorgan, the deal was priced at the mid-point of its indicative range and was described as fairly priced and well executed by non-lead bankers.
Given that PLUS is a relatively low volatility stock with no stock borrow, investors were most fixated on the yield and strength of the bond floor. Final terms comprised an issue price of par, zero coupon and five-year maturity with a put in year two at 103.957% and redemption at 110.189% to yield 1.95%. The yield was marketed at...
