Malaysia's Southern Bank sells $200 million tier I perpetual notes

By Reshmi Basu

New York, Oct. 26 - Southern Bank Bhd. sold $200 million of hybrid tier I perpetual notes at par to yield 6.62% or a spread of 203 basis points more than Treasuries, according to a market source.

UBS Investment Bank was the bookrunner.

The notes will become callable at par on Nov. 2, 2015. If the bonds are not called, the bonds become hybrid tier I non-cumulative preferred shares.

Southern Bank, based in Kuala Lumpur, is a lender.

Issuer: Southern Bank Bhd.

Amount: $200 million

Issue: Hybrid tier I perpetual notes

Maturity: Perpetual

Coupon: 6.62%

Issue price: Par

Spread: Treasuries plus 203 basis points

Call option: Callable on par on Nov. 2, 2015; if the bonds are not called, the bonds become hybrid tier I non-cumulative preferred shares

Pricing date: Oct. 26

Settlement date: Nov. 2

Bookrunner: UBS Investment Bank

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.