UEM Edgenta Bhd: Views on new MYR bonds

UEM Edgenta Bhd: Views on new MYR bonds

·         UEM Edgenta priced MYR250m 5y bonds with a yield of 4.85%/about 105bps over MGS.

·         On credit, we think it is a weak AA- considering its moderate size, thinning margins, tight on OCFDC and rising gearing, but moderated by parental support from UEM Group.

·         On pricing, we think UEME should give a 10bps premium over UEM Sunrise, with a view that the latter is more strategically important under ultimate parent Khazanah.