United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Standard Chartered Bank Malaysia Bhd (StanChart Malaysia) have priced an offering of RM250 mil medium term notes (MTN) for Mercedes-Benz Services Malaysia Sdn Bhd (MBSM).
In a joint statement today, the banks said the MTN issuance, due in September 2023, has AAA rating by RAM Rating Services and is priced at a fixed coupon rate of 2.70% per annum.
“This issuance was timely as it provides MBSM a diversification of the company’s funding for corporate purposes and benefit from the current low-interest-rate environment,” UOB Malaysia managing director and country head of wholesale banking, Ng Wei Wei said in an Oct 7 note.
She also added 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 Covid-19 pandemic.
MBSM is a subsidiary of Daimler AG, one of the world’s leading automotive group of companies.
According to the banks, MBSM’s fourth MTN transaction is a reinforcement of Daimler AG’s confidence in the domestic debt market.
The transaction is part of MBSM’s RM3.0 bil debt offering programme launched in May 2018. – Oct 8, 2020
