MAS taps capital markets with ECGD guaranteed bond

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Malaysia Airlines (MAS), through MAS A330 Cayman I, has issued an Export Credits Guarantee Department (ECGD) guaranteed bond for the refinancing of four Airbus A330-300s that were delivered in 2012.

The deal is priced at market swaps +90 basis points (bps), with a coupon rate at 2.31% (swapped equivalent of Libor + 55 bps).

The $302 million deal matures in May 2024.

Citi, ANZ, HSBC and Standard Chartered acted as bookrunners in the transaction.

The pricing is consistent with the prior ECGD bond deal done last month (but for a larger deal size), says one of the bookrunner.

The transaction refinanced the bank facility financing four A330s (MSNs 1318, 1336, 1337 and 1347) which were delivered between May and September 2012.

The issuer will use the proceeds of the issuance to prepay a loan that funded the purchase of the four new A330-300 aircraft.

The transaction represents the largest ever ECGD bond issuance and only the fourth ECGD deal for airlines.

The MAS deal is also the first ECGD bond deal for an Asian carrier.