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HSBC unit raises $205m in Malaysia sukuk sale

MALAYSIA, March 27, 2015

The Malaysian Islamic banking arm of HSBC Holdings has raised 750 million ringgit ($205 million) from the sale of a five-year Islamic bonds (sukuk) at a yield of 4.24 per cent, IFR reported.

The sale is the third tranche of the lender's overall three billion ringgit sukuk programme, sold using an agency-based structure known as 'wakala'.

The size of the deal is larger than an initial target of 500 million ringgit stated in a term sheet seen by Reuters earlier.

HSBC Amanah Malaysia Bhd pulled in strong demand, with the final book exceeding 1.38 billion ringgit at a bid-to-cover ratio of 1.84 times, according to IFR. HSBC Amanah didn't immediately respond to requests for comment.

Final pricing came at the low end of guidance, which started at 4.22-4.28 per cent.

As orders poured in, the guidance was tightened to 4.22-4.25 per cent within a few hours after books were opened, the Thomson Reuters publication added.

The transaction is the latest issuance of sukuk by HSBC Amanah, with the bank last tapping the market in October with a five-year 500 million ringgit deal, with a similar debut deal in September 2012.

HSBC Amanah hired HSBC as lead arranger with Hong Leong Islamic Bank and Maybank Investment Bank as joint lead managers for the sale, the term sheet said. - Reuters




Tags: HSBC | sukuk | malaysia | Islamic | Sale |

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