Putrajaya appoints companies to help raise RM7.5b samurai bonds

Japan Ambassador Makio Miyagawa shares a light moment with Finance Minister Lim Guan Eng in Putrajaya January 18, 2019. — Picture by Shafwan Zaidon
Japan Ambassador Makio Miyagawa shares a light moment with Finance Minister Lim Guan Eng in Putrajaya January 18, 2019. — Picture by Shafwan Zaidon

PUTRAJAYA, Jan 18 ― The Finance Ministry has appointed joint lead arrangers to spearhead efforts to raise ¥200 billion (RM7.52 billion) in samurai bonds in Japan.

Minister Lim Guan Eng said the four are Mizuho Bank (Malaysia) Berhad, HSBC Bank Malaysia Berhad, and Daiwa Capital Markets Singapore Limited in partnership with Affin Hwang Investment Bank.

“The appointments were made from six proposals, which were shortlisted from 27 proposals the ministry received in November 2 last year,” he said during a press conference.

Lim added the Japan Bank of International Cooperation will guarantee the bond and allow Malaysia to pay all-inclusive indicative coupon rates of less than 0.65 per cent per annum, as part of a government-to-government arrangement.

“I have been directed by the prime minister to handle the entire bond issuance and lead a delegation to Tokyo next month to meet all relevant investors and ensure a successful bond-raising exercise,” he said.

Lim said today was a historic occasion for both Malaysia and Japan, as the last time a samurai bond loan was issued was in 1989.

“I am confident it will go smoothly, as Treasury secretary-general Datuk Ahmad Badri Mohd Zahir also participated in the first samurai bond loan (while serving as assistant secretary) and his experience this time round will go a long way.

“We would like to voice our thanks and appreciation to the Japanese government for providing guarantee for the bond, as well as to the Japanese Ambassador to Malaysia Dr Makio Miyagawa, for his invaluable assistance and contribution towards ensuring a smooth negotiation exercise,” he said.