Malaysia's CIMB prices $350 million bond at 190 basis points over US Treasurys

Malaysia's second largest lender CIMB Group Holdings Bhd said on Sunday it priced $350 million bond issue at a spread of 190 basis points over the five-year US government bond, representing a yield of 2.505 percent annually with a coupon of 2.375 percent.
The bank said the five-year senior unsecured notes issuance, which comes under its $1 billion euro medium term note programme set up on January 27, 2011, marks the lowest five-year borrowing cost amongst its Malaysian banking peers to date.
"This deal shows that the market environment remains very conducive for corporate issuers, including banks, in this region to tap the fixed income markets," CIMB's group chief executive Nazir Razak said in a statement.
CIMB said Asian investors accounted for 86 percent of the allocation with the balance to European accounts.
The bonds, rated A3 or stable by Moody's Investors Services, will be listed on the Singaporean bourse, according to the bank. CIMB said it also submitted an application to the Malaysian bourse for the notes listing. The bond matures on July 26, 2017.