IOI Corp's New Offer of US$300m Notes Attracts Investors' Interest
27/10/2021The Edge Markets

(File pic by IOI Corporation).

KUALA LUMPUR (Oct 27): IOI Corp Bhd said its subsidiary IOI Investment (L) Bhd's new offer of US$300 million 10-year unsecured notes has attracted institutional investors.

The new offer of US$300 million 10-year senior unsecured notes is a drawdown from the issuer's US$1.5 billion Euro Medium-term Note Programme.

On Tuesday (Oct 26), Moody's rated IOI Investment with Baa2 rating as it had successfully returned to the international capital markets from its last bond issuance in 2012.

"With strong orders over US$1.2 billion at its peak, the notes successfully attracted interest from a wide array of high-quality institutional investors.

"The notes were priced at US Treasury spreads of T+185 bps, which was a 25-bps tightening from the initial pricing guidance," said IOI Corp in a bourse filing on Wednesday.

Capitalising on a short favourable market window amidst recent rates volatility, IOI Corp said this successful transaction illustrates the group's ability to navigate a challenging environment and respond efficiently to capture conducive market conditions.

Credit Suisse, SMBC Nikko, and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the transaction.

Separately, IOI Corp said trading of the group's shares as well as its structured warrants was halted from 10.42am to 11.42am on Wednesday.

At 12.17pm on Wednesday, shares of IOI Corp were down four sen or 0.99% to RM4.01, with a market capitalisation of RM25.2 billion.

Last week, IOI Investment invited holders of its outstanding US$600 million 4.375% notes due 2022 to tender for their notes for purchase by the company for cash.

The notes under the company's US$1.5 billion Euro Medium Term Note Programme are guaranteed by IOI Corp.

On Tuesday (Oct 26), IOI Investment extended the tender offer settlement date for its US$600 milion notes to Nov 9 from Nov 3.