Malaysian conglomerate Sime Darby has closed the books on its very successful inaugural Islamic bond issue. The seven -year issue was sold at par yesterday with an Islamic profit yield equivalent to a coupon of 4.38%. The deal raised RM500 million $131.5 million for the revered Malasyian firm.
In yesterday's market, seven-year Malaysian government securities were trading at a mid point of 3.45% meaning that Sime Darby's issue came in at a 93bp spread. According to bankers close to the deal, this price is the lowest ever for a corporate bond deal in Malaysia and is inside the level of the nearest comparable bond, the six-and-a-half year issue for PLUS, the...
