by NUR HAZIQAH A MALEK / pic by MUHD AMIN NAHARUL
BANK Simpanan Nasional’s (BSN) debut into the capital markets pursuant to its RM750 million sukuk wakalah under its recently established Sukuk Wakalah Programme of up to RM3.5 billion in nominal value received an overwhelming response from investors with its oversubscription.
BSN chief executive said the successful launch of this offering marks another important milestone for BSN as this is the bank’s maiden issuance in the capital markets.
“We are pleased with the investors’ response to our debut offering and the outcome of the transaction.
“The overwhelming demand we received from the investors is an indication of the confidence the market has in BSN and the sustainability of our business, with a special mandate as the national savings bank and a strategic government vehicle to implement the government’s agenda,” he said in a statement.
The offering was successfully priced at RM750 million on Oct 7, 2021 pursuant to a one-day book-building exercise which led to the transaction being upsized to RM750 million from the initial RM500 million due to the robust response from investors.
Due to the successfully executed book-building exercise and robust demand, the three year, five year and seven year tranches were priced at 2.93%, 3.47% and 3.89% respectively at two to three bps tighter than the lower end of the initial price guidance.
It was oversubscribed by 3.48 times with the final order book registering RM2.61 billion total orders from over 30 accounts including fund managers, financial institutions, lifers and government agencies.
The programme has been assigned a final rating of AAA by RAM Rating Services Bhd, and proceeds will be utilised for the bank’s Shariah-compliant financing activities such as refinancing existing and future financing, working capital as well as other corporate purposes.
The principal adviser and lead arranger for the programme is Maybank Investment Bank Bhd while the joint lead managers are Maybank Investment Bank Bhd, Affin Hwang Investment Bank Bhd and Bank Islam Malaysia Bhd.