(March 20): Malaysia has enlisted a group of banks to arrange a planned US$1 billion ($1.28 billion) dollar-bond sale for refinancing, marking its first return to the US currency market in five years.
The Southeast Asian nation, rated A- by S&P Global Ratings, has gathered lenders including CIMB Group Holdings Bhd (KL:CIMB), HSBC Holdings plc and JPMorgan Chase & Co, to work on the potential issuance, according to people familiar with the matter.
The banks are preparing to begin the sales process in the coming weeks, the people said, with timing subject to market conditions.
The move signals Malaysia’s return to the dollar debt market as it bets on improved investor appetite for emerging-market sovereign bonds. Malaysia last tapped the dollar bond market in 2021, raising US$1.3 billion.
The government sent a request for proposals to banks for a potential offering, a spokesperson for the nation’s finance ministry said in response to emailed questions from Bloomberg News in January. The proceeds, among others, will be used for the dollar bonds maturing this year, the spokesperson said.
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