FW: Danajamin Nasional Bhd: Views on new 10NC5 subdebt_20171003

 

 

Danajamin Nasional Bhd: Views on new 10NC5 subdebt

 

·         Danajamin raised MYR500m AA1-rated subdebt with a 10NC5 structure.

·         Relative to bank subdebts, we think the new Danajamin subdebt offers value given its policy insurer role and without the PONV clause, but pricing is weighed by the generally wider Danajamin FG curves.

·         We think there may be tightening potential if supply technical from FG bonds turn supportive.