BONDS: Cagamas sees solid demand for debut Dim Sum

Cagamas priced a Rmb1.5bn (US$244m) offering of three-year senior unsecured Reg S notes at a 3.7% yield. This is the company’s first foreign-currency bond.

The trade printed in line with final guidance, but 15bp tighter than initial guidance in the area of 3.85% released Friday morning.

It was the first Tiger Emas offshore renminbi bond from Malaysia, meaning the first to be settled locally via Rentas, which MyClear operates and manages.

It is also the largest offshore renminbi bond out of Malaysia, as well as the largest Dim Sum bond from a mortgage company and from South-East Asia.

Asian investors took 91% of the deal with the rest went to EMEA investors. Fund managers booked 71%, while the rest went to banks at 24%, private banks/corporates at 2%, sovereign entities at 3%.

Banks referenced A2 rated China Construction Bank’s 3.45% 2017s, quoted at 3.51%, A3/A– rated Sinochem’s 3.55% 2017s, quoted at 3.55% and A3/A– rated Baosteel’s 4.15% 2017s, quoted at 3.56%.

Bank of China, HSBC and Maybank Investment Bank were the joint bookrunners and lead managers.

The bonds are being sold off an existing US$2.5bn medium-term note programme with Cagamas Global as issuer and A3 rated (Moody’s) Cagamas as guarantor.