By Marisa Wong
Madison, Wis., April 8 - Malayan Banking Bhd. (Maybank)'s wholly owned subsidiary Maybank Islamic Bhd. issued RM 1.5 billion of Basel III-compliant tier 2 capital subordinated sukuk on Monday, according to a Bursa Malaysia announcement.
The sukuk were issued under an up to RM 10 billion subordinated sukuk program established in March.
The 4¾% notes have a tenor of 10 years on a 10 non-callable five-year basis.
After five years the securities are callable on every coupon payment date.
Proceeds will be used to fund Maybank Islamic's business expansion program, general banking, working capital and other corporate purposes.
RAM Rating Services Bhd. has assigned a rating of AA1 to the sukuk.
Maybank is a commercial and retail bank based in Kuala Lumpur.
| Issuer: | Maybank Islamic Bhd.
|
| Issue: | Basel III-compliant tier 2 capital subordinated sukuk
|
| Amount: | RM 1.5 billion
|
| Maturity: | April 5, 2024
|
| Coupon: | 4¾%
|
| Call option: | Non-callable for first five years, then on every coupon payment date beginning April 5, 2019
|
| Settlement date: | April 7
|
| Rating: | RAM Rating Services: AA1
|
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