KUALA LUMPUR: United Overseas Bank Malaysia Bhd (UOB Malaysia) and HSBC Bank Malaysia Bhd (HSBC Malaysia) have priced a four-year Medium Term Notes (MTN) amounting to RM350 million for Mercedes-Benz Services Malaysia Sdn Bhd (MBSM).
The MTN issuance, MBSM’s sixth and largest debt issuance in the ringgit bond market, is due in March 2026 at a fixed coupon rate of 3.62% per annum, and is rated AAA(s) by RAM Rating Services Bhd.
In a joint statement yesterday, the entities said the issuance was well received with a subscription rate of 4.76 times, subsequent to its upsized issue amount from the initial RM250 million.
The landmark transaction drew strong demand from a diverse pool of high-quality investors, comprising insurance companies, fund managers, banks, private banks, and quasi-government entities.
The offering achieved a tight spread, equivalent to 54 basis points above the four-year Malaysian Government Securities rates and lower than the existing MBSM bond yields trading in the market.
UOB Malaysia deputy CEO Ng Wei Wei said the issuance managed to garner tight pricing and strong demand from institutional investors to become MBSM’s largest issuance to date, despite the prevailing global market uncertainties.
Meanwhile, HSBC Malaysia country head of global banking Christina Cheah said the exercise was an outstanding accomplishment for MBSM as it had achieved the highest oversubscription rate to-date from investors, resulting in a pricing lower than its current secondary yields trading in the market.
MBSM is a subsidiary of Mercedes-Benz Mobility, a division of Mercedes-Benz Group AG. - Bernama
