By Marisa Wong
Madison, Wis., Dec. 28 - Malayan Banking Bhd. (Maybank) said that it issued RM 1 billion of subordinated notes in two tranches on Dec. 28. The subordinated notes will qualify as tier 2 capital.
The first tranche of notes, totaling RM 750 million, priced to yield 3.97% with a maturity of 10 years. They are non-callable for five years. The second tranche, totaling RM 250 million, priced to yield 4.12% with a maturity of 12 years. They are non-callable for seven years.
The new notes were issued under Maybank's up to RM 3 billion subordinated note program announced in May 2011. The bank priced RM 2 billion of notes under the program in August.
The issuer said that it received strong support and interest from investors resulting in an oversubscription of 1.47 times for the first tranche and 1.48 times for the second tranche.
Proceeds will be used to fund Maybank's working capital, general banking and other corporate purposes.
The commercial and retail bank is based in Kuala Lumpur, Malaysia.
| Issuer: | Malayan Banking Bhd.
|
| Issue: | Tier 2 subordinated notes
|
| Amount: | RM 1 billion
|
| Settlement date: | Dec. 28
|
|
|
| Tranche 1
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| Amount: | RM 750 million
|
| Maturity: | 10 years
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| Yield: | 3.97%
|
| Call: | Non-callable for five years
|
|
|
| Tranche 2
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| Amount: | RM 250 million
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| Maturity: | 12 years
|
| Yield: | 4.12%
|
| Call: | Non-callable for seven years
|
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