By Marisa Wong
Madison, Wis., April 21 - Malayan Banking Bhd. announced it priced S$1 billion of 10-year tier 2 capital subordinated notes with a 3.8% coupon.
DBS Bank Ltd., Hongkong and Shanghai Banking Corp. Ltd., Kim Eng Securities Pte. Ltd., Oversea-Chinese Banking Corp. Ltd. and Standard Chartered Bank are the joint lead managers.
This is the bank's first issue under its previously announced S$2 billion multicurrency medium-term note program jointly arranged by HSBC, Maybank Investment Bank Bhd. and Standard Chartered Bank.
The bank said that it received an overwhelming response from investors in Singapore, Malaysia and Hong Kong, resulting in an oversubscription of 1.7 times the issue size. The notes issuance is the largest single tranche transaction for a Malaysian borrower in Singapore, according to a press release.
The notes are non-callable for five years.
Proceeds will be used to fund Maybank's working capital, general banking and other corporate purposes.
The notes have been assigned a BBB+ rating by Standard & Poor's and Fitch Ratings.
The issue will settle on April 28.
Maybank is a Kuala Lumpur-based commercial and retail bank.
| Issuer: | Malayan Banking Bhd.
|
| Issue: | Tier 2 capital subordinated notes
|
| Amount: | S$1 billion
|
| Maturity: | 2021
|
| Lead managers: | DBS Bank Ltd., Hongkong and Shanghai Banking Corp. Ltd., Kim Eng Securities Pte. Ltd., Oversea-Chinese Banking Corp. Ltd., Standard Chartered Bank
|
| Coupon: | 3.8%
|
| Call option: | After five years
|
| Settlement date: | April 28
|
| Ratings: | Standard & Poor's: BBB+
|
| Fitch: BBB+
|
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