Discuss FOUR (4) factors Maybank would consider before issuing bonds on the Singapore Exchange's (SGX) bond market. Malayan Banking Bhd (Maybank) has issued US$28 million (about RM115.81 million)worth of bonds, which were listed today on the Singapore Exchange's (SGX) bondmarket. In a filing with the SGX yesterday (April 8), Maybank said the notes, whichwere issued yesterday, would be due in 2028 and would pay an annual interest rate of1.8%."The notes will be quoted and traded in US dollars," Maybank said, without specifyinghow proceeds from the bond sale will be used. The lead managers and bookrunners ofthe notes are Maybank Kim Eng Securities Pte Ltd and The Hongkong and ShanghaiBanking Corp Ltd, according to Maybank.For comparison, Maybank's US$28 million bonds' annual coupon of 1.8% is higherthan Malaysia's overnight policy rate (OPR) of 1.75%. Bank Negara Malaysia's (BNM)Monetary Policy Committee (MPC) on March 4, 2021 decided to maintain the country'sOPR at 1.75%, the central bank said in a statement that day. "The MPC considers thestance of monetary policy to be appropriate and accommodative," said BNM.Among major corporate bond issuers, Petroliam Nasional Bhd (Petronas) said in astatement on March 17, 2021 that Petronas had priced a US$600 million single-trancheseven-year note issued by its wholly-owned subsidiary Petronas Energy Canada Ltd(PECL) at 85 basis points over the seven-year US Treasury to yield 2.112% a year."Proceeds will be utilised by PECL to fund its continued development and productionactivities, debt refinancing and for general corporate purposes," Petronas said.On Bursa Malaysia today, Maybank's share price rose two sen or 0.24% at 11.57am toRM8.30, which gives the group a market capitalisation of about RM93.29 billion.Maybank has 11.24 billion issued shares, according to the group's latest quarterlyfinancial report.

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Discuss FOUR (4) factors Maybank would consider before issuing bonds on the Singapore Exchange's (SGX) bond market

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.5CE: Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States...

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