Penerbangan Malaysia Berhad

PENERBANGAN MALAYSIA BERHAD’S USD1 BILLION 10-YEAR GUARANTEED NOTES

The A3/A- rated deal is guaranteed unconditionally and irrevocably by the Government of Malaysia. The 10- year maturity issue priced at 99.864% at a coupon of 5.625% to yield 5.643%. On a spread basis, that equates to 89.25 basis points over the 10-year U.S Treasury and 35 basis points over the 10-year U.S Dollar mid-market swap rate.

The US Dollar denominated offering was initially marketed to investors with an indicative spread range of mid-swaps +35-38 basis points and an initial sizing of up to USD1 billion. After garnering significant investor interest during the roadshow, it was priced at the tight end of the spread range, or +35 basis points over mid-swaps and the final size was set at high-end of the range, or USD1 billion.

The order book was over 2x subscribed with over 75 accounts taking part in the deal. Geographically, the distribution was split relatively evenly among global investors, with 39% going to Asia, 8% to Japan / Australia, 28% to Europe and the remaining 25% to the US. In terms of investor type, central banks and agencies bought 22%, banks 26%, insurance/pension funds 28%, asset managers 15% and corporates 9%.

The issue represents the second-largest bond offering out of Malaysia since 2002 and the largest-ever Malaysian sovereign bond offering.

”THIS STATEMENT IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES. SECURITIES MAY NOT BE SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. PENERBANGAN MALAYSIA BERHAD AND THE GOVERNMENT OF MALAYSIA DO NOT INTEND TO REGISTER ANY PORTION OF THE OFFERING IN THE UNITED STATES OR CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES”.