Malaysia's CIMB Bank raises RM 1 billion from tier 1 capital securities

By Jennifer Chiou

New York, Sept. 24 - CIMB Bank Bhd. announced Wednesday that it raised RM 1 billion in a well-oversubscribed offering of innovative tier 1 capital securities.

Within 24 hours of opening the offer, CIMB Bank said it received demand for more than three times the initial RM 500 million it had planned to raise.

"We are extremely encouraged by the strong demand from investors amidst current difficult market conditions, which is testimony to their confidence in our business model," the group's chief executive officer, Dato' Sri Nazir Razak, said in a news release.

"This is also the first time that our bank's ringgit capital instrument has been distributed among high net worth individuals."

Proceeds are slated for the bank's general working capital.

The issue was approved on Wednesday and is expected to settle in the second week of October.

CIMB Bank is a retail and commercial bank. Its parent company, CIMB Group Snd. Bhd., is a subsidiary of Kuala Lumpur-based bank group Bumiputra-Commerce Holdings Bhd.

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