By Marisa Wong
Madison, Wis., May 24 - Malaysia's Hong Leong Bank Bhd. said it completed the issuance of RM 1.5 billion of tier 2 subordinated notes on Friday.
The subordinated notes have a maturity of 12 years and a coupon of 4½%, payable semiannually.
The notes are callable on any interest payment date after seven years.
CIMB Investment Bank Bhd., Hong Leong Investment Bank Bhd. and Maybank Investment Bank Bhd. are the joint lead arrangers, joint principal advisers and joint lead managers for the offering.
Proceeds will be used for working capital and general banking purposes.
"Despite a number of large bond issuances coming to the market, the [notes] received an encouraging response from a wide range of investors totalling over 30 accounts, with most orders coming from asset managers and insurers," said group managing director Datuk Yvonne Chia in a press release.
"The order book was well executed and we are very pleased with the results as well as the efforts by the joint lead managers. The success of the transaction is also a reflection of investors' confidence in Hong Leong Bank and its positive outlook going forward."
The Kuala Lumpur-based bank's new notes are rated AA2 by RAM Rating Services Bhd.
| Issuer: | Hong Leong Bank Bhd.
|
| Issue: | Tier 2 subordinated notes
|
| Amount: | RM 1.5 billion
|
| Maturity: | 12 years
|
| Coupon: | 4½%, payable semiannually
|
| Call option: | On any interest payment date after seven years
|
| Bookrunners: | CIMB Investment Bank Bhd., Hong Leong Investment Bank Bhd. and Maybank Investment Bank Bhd.
|
| Announcement date: | May 24
|
| Settlement date: | June 22
|
| Rating: | RAM Rating Services: AA2
|
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