By Reshmi Basu
New York, Jan. 20 - AmMerchant Bank Bhd. said it sold $200 million of hybrid tier 1 capital preference shares (Ba2/BB/BB) at par to yield 6.77%.
The issue, increased from $150 million, was two times oversubscribed.
"The funds raised from the hybrid securities issue will further improve AmBank's tier 1 capital ratio from 6.02% to 7.08% and the overall capital adequacy ratio from 10.46% to 12.05%," said Cheah Tek Kuang, managing director, in a news release.
AmMerchant Bank, BNP Paribas and Credit Suisse were the joint lead managers for the issue, which was priced through AMBB Capital, a wholly owned subsidiary of AmBank.
Kuala Lumpur, Malaysia-based AmMerchant Bank is a financial institution.
| Issuer: | AMBB Capital
|
| Amount: | $200 million
|
| Issue: | Hybrid tier 1 capital preference shares
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| Coupon: | 6.77%
|
| Issue price: | Par
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| Yield: | 6.77%
|
| Spread: | 10-year mid-swaps plus 190 basis points
|
| Bookrunners: | AmMerchant Bank, BNP Paribas, Credit Suisse
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB
|
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