Malaysia bond market weekly updates -13 August 2017
Global financial markets were in risk-off mode based on the Thomson Reuters BPAM All Bond Index Performance, as geopolitical tension escalated following North Korea’s threat to launch four ballistic missiles into the waters near Guam, a US territory in the Pacific Ocean.
Hence, the Thomson Reuters BPAM All Bond Index grew by 0.123 per cent to close the week at 153.790 points from 153.601 points last week as flight-to-safety flows swelled. North Korea’s reaction was a direct response to US President Trump earlier warning that US will unleash “fire and fury” against North Korea should they continue to threaten US
The total trade volume of the top 10 most active bonds increased to RM6.2 billion from RM5.7 billion last week. The three-year benchmark MGII maturing on April 15, 2020 continued to top the list with RM828 million changed hands.
Looking at sovereign auction, on August 10, Bank Negara Malaysia announced the details for the new 3.5-year benchmark MGS maturing on February 15, 2021. The issue amount for the tender is RM3.5 billion. The tender will be closed on August 14, 2017 and be issued on August 15, 2017.
On new Issuances, as on August 7, Cagamas Bed issued one tranche of 1-year IMTN (profit rate 3.78 per cent) worth RM230 million and another tranche of 1-year MTN (coupon rate 3.78 per cent) amounted to RM180 million. Both issues are rated AAA with stable outlook by RAM Ratings and MARC.
On the same day, Westports Malaysia Sdn Bhd issued a two-year and a three-year MTN worth RM100 million each. The coupon rates are 4.15 and 4.22 per cent respectively. The MTNs are rated AA+IS with stable outlook by MARC.
On August 8, 2017, there were six issuances. Ihsan Sukuk Bhd issued a RM100 million seven-year IMTN with a profit rate of 4.6 per cent. The IMTN is rated AAA(S) with stable outlook by RAM Ratings.
Malayan Banking Berhad issued a one-year discount bond worth RM22 million. The bond is rated AAA with stable outlook by RAM Ratings.
Sabah Development Bank Berhad issued a three-year MTN with an issuance size of RM25 million and coupon rate of 5.010 per cent. The MTN is rated AA1 with stable outlook by RAM Ratings.
Sunway Treasury Sukuk Sdn Bhd issued a five-year RM50 million IMTN with profit rate of 4.9 per cent. The IMTN is guaranteed by Sunway Bhd and is rated AA-IS (CG) with stable outlook by MARC.
Sunway Berhad issued a three-year MTN worth RM160 million with 4.600 per cent coupon rate. The MTN is rated AA- with stable outlook by MARC.
UEM Sunrise Berhad issued a one-year IMTN amounted to RM100 million with a profit rate of 4.47 per cent. The IMTN is rated AA-IS with stable outlook by MARC.
On August 9, 2017, Perbadanan Kemajuan Negeri Selangor issued a one-year IMTN worth RM100 million with 4.600 per cent profit rate. The issuance is rated AA3 with stable outlook by RAM Ratings.
On August 11, 2017, Premier Merchandise Sdn Bhd issued a one-year RM75 million MTN with coupon rate of 3.950 per cent.
The issuance is guaranteed by Maybank and is rated AAA(BG) with stable outlook by MARC.