1st Silicon Malaysia has launched a $325 million issue, as part of its ongoing funding program via arranger Nomura. It will be the first bond issue from Malaysia to achieve an investment grade rating without support from the federal government, and the first time a silicon semi-conductor company has used the fixed income market in such a way. Usually semi-conductor companies finance themselves with equity or high-yield debt.
Special purpose vehicle 1st Silicon Labuan Inc. will sell $325 million floating-rate notes and pass the proceeds to the borrower, 1st Silicon (Malaysia). This is the second part of the financing - last year Nomura arranged a $180 million syndicated loan for the company. The funds from this deal will pay back the loan and be used for general corporate purposes.