RHB raises $300m ahead of merger

RHB Bank sold a $300 million five-year bond on Monday, the third dollar-denominated offering over the value of $100 million from a Malaysian borrower so far this year.

The Reg S-registered note ended up pricing 15bp tighter than its initial price offering of Treasuries plus 145bp area, riding on the rarity factor and the positive momentum gathered from its potential merger with CIMB and Malaysia Building Society.

If successful, the merger would create Malaysia’s largest financial institution with total assets of M$614 billion $188 billion. Moody’s described the potential transaction as credit positive for RHB Capital given the increased scale and stronger funding profile.