UOB Malaysia and Standard Chartered Malaysia successfully price RM250 million MTN for Mercedes-Benz Services Malaysia
Mercedes-Benz Services Malaysia’s fourth MTN issuance receives encouraging demand from investors amid challenging business environment brought about by the impact of COVID-19 pandemic
Kuala Lumpur, 7 October 2020 – United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Standard Chartered Bank Malaysia Berhad (Standard Chartered Malaysia) today announced that they have successfully priced an offering of RM250 million Medium Term Notes (MTN) which was jointly managed for Mercedes-Benz Services Malaysia Sdn Bhd (MBSM).
The MTN issuance, rated AAA by RAM Rating Services Berhad, is due in September 2023. Priced at a fixed coupon rate of 2.70 per cent per annum, the deal was closed with the lowest coupon achieved for a three-year ringgit-denominated AAA-rated paper for the year. MBSM will use the funds for its general corporate purposes.
Ms Ng Wei Wei, Managing Director and Country Head of Wholesale Banking UOB Malaysia said, “We were committed to ensuring the success of the issuance given our long standing and well-established relationship with MBSM. This issuance was timely as it provides MBSM a diversification of the company’s funding and an opportunity to benefit from the current low interest rate environment.
“We were privileged to have the continued confidence from MBSM in its fourth debt capital issuance. Having jointly managed this deal to fruition with Standard Chartered Malaysia, we are pleased that MBSM achieved the lowest pricing for a three-year AAA rated paper for the year, especially given the challenging business environment brought about by the impact of COVID-19 pandemic,” Ms Ng said.
Mr Mak Joon Nien, Head of Corporate, Commercial and Institutional Banking Client Coverage, Standard Chartered Malaysia said, “The repeat mandate is testament to the strong relationship between the Bank, UOB Malaysia and MBSM. We are deeply honoured by the trust that our client has, not just us in Malaysia, but also in our global franchise as a whole. This transaction sees MBSM pricing at its lowest coupon yet in the Malaysian market as the company proactively manages its liquidity requirements. We are pleased to have the opportunity to work with MBSM and UOB Malaysia as a Joint Lead Manager for the issuance, where the teams collaborated seamlessly to address the execution needs of the transaction.”.
MBSM is a subsidiary of Daimler AG, one of the world's leading automotive group of companies. With its Mercedes-Benz Cars & Vans, Daimler Trucks & Buses and Daimler Mobility divisions, the Group is one of the leading global suppliers of premium cars and one of the world's leading manufacturers of commercial vehicles.
Mr Philipp Zuehlke, Chief Financial Officer, MBSM said, “We are pleased to have worked with both UOB Malaysia and Standard Chartered Malaysia for this MTN issuance. Both banks have displayed their understanding of our unique requirements as a leading global supplier of premium cars and one of the world's leading manufacturers of commercial vehicles. We look forward to developing this partnership and to leveraging their strong international network and cross-border capabilities for our future business expansion.”
MBSM’s fourth MTN transaction is a reinforcement of Daimler AG’s confidence in and support of the domestic debt market. The transaction is part of MBSM’s RM3.0 billion debt offering programme which was launched in May 2018.