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Overwhelming Demand for SME Bank RM600 Million Government Guaranteed Islamic Medium Term Notes (IMTNS)

KUALA LUMPUR : 15 March 2019

Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) has on 15 March 2019 successfully completed the book building exercise for RM600 million Government Guaranteed Islamic Medium Term Notes

The IMTNs have tenures of 5 and 7 years and final pricing ranging from 4.03% to 4.10%. Overwhelming demand allowed the Bank to secure several cornerstone investors to close the book at competitive pricing of between 45 basis points and 31 basis points above MGS in the mid-range of the pricing guidance.

The buzzing interest from Financial Institutions and Asset Management companies submitted a total bid-to-cover ratio of over 3 times or RM1.83 billion of the final order over the issuances size. This reflects strong market confidence in SME Bank’s digital and technology transformation plan as part of its mandate to nurture, develop and serve the SMEs in Malaysia in a more holistic and effective manner in embracing Industrial Revolution 4.0.

The Joint Lead Managers for the transaction are AmInvestment Bank Berhad, Kuwait Finance House (M) Berhad and Maybank Investment Bank Berhad.

SME Bank is wholly-owned by the Ministry of Finance, regulated by Bank Negara Malaysia and reporting to the Ministry of Entrepreneur Development. Since its inception, SME Bank has provided various financing and beyond financing assistance to entrepreneurs from start-up stage to global market players.