By Marisa Wong
Madison, Wis., Dec. 23 - CIMB Bank Bhd. completed the issuance of RM 2 billion of subordinated debt on Dec. 23, according to a CIMB Group Holdings Bhd. announcement.
The RM 2 billion of subordinated debt was issued under the RM 5 billion subordinated debt program approved on March 2, 2009 and Sept. 24.
The subordinated debt was issued in two tranches of RM 1 billion each.
The first tranche has a coupon of 4.3% and a maturity of 10 years and is callable on any coupon payment date after five years.
The second tranche has a 4.8% coupon and a maturity of 15 years, callable after 10 years.
Redemption will be subject to Bank Negara Malaysia's approval.
Proceeds from the issuance will be used for CIMB Bank's working capital.
The new subordinated debt was rated AA+ by Malaysian Rating Corp. Bhd.
CIMB Bank is a retail and commercial bank. Its parent company, CIMB Group Snd. Bhd., is a wholly owned subsidiary of Kuala Lumpur-based CIMB Group Holdings.
| Issuer: | CIMB Bank Bhd.
|
| Amount: | RM 2 billion
|
| Description: | Subordinated debt
|
| Settlement date: | Dec. 23
|
| Rating: | Malaysian Rating Corp.: AA+
|
|
|
| 10-year debt
|
| Amount: | RM 1 billion
|
| Maturity: | 10 years
|
| Coupon: | 4.3%
|
| Call: | After five years, on any coupon date
|
|
|
| 15-year debt
|
| Amount: | RM 1 billion
|
| Maturity: | 15 years
|
| Coupon: | 4.8%
|
| Call: | After 10 years
|
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