By Susanna Moon
Chicago, Nov. 13 - Public Bank Bhd. said it issued RM 888 million of nominal value non-cumulative perpetual capital securities at par in the second tranche of its securities offering on Friday.
The bank will sell up to RM 5 billion of the securities, which are stapled to subordinated notes issued by PBFIN Bhd., a wholly owned subsidiary, under a non-innovative tier 1 stapled securities program.
The bank issued RM 1.2 billion of the stapled securities on June 5.
The tenor of the capital securities is perpetual. The subordinated notes will have a maturity Nov. 13, 2059, with the first optional redemption date on Nov. 13, 2019.
The distribution rate and interest rate payable on the second tranche of the capital securities and the subordinated notes are both 7.2% per year, payable semiannually.
The second tranche of the securities will qualify as tier 1 capital under Bank Negara Malaysia's capital adequacy regulations.
Proceeds will be used to finance working capital, general banking and other corporate purposes.
Public Bank is a Kuala Lumpur-based retail and commercial bank.
| Issuer: | Public Bank Bhd.
|
| Issue: | Non-cumulative perpetual capital securities
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| Total amount: | RM 5 billion
|
| Maturity: | Perpetual
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| Announcement date: | June 8
|
| Settlement dates: | June 5 (for RM 1.2 billion); Nov. 13 (for RM 888 million)
|
|
|
| First tranche
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| Amount: | RM 1.2 billion
|
|
|
| Second tranche
|
| Amount: | RM 888 million
|
| Interest rate: | 7.2%
|
| Price: | Par
|
|
|
| Subordinated notes
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| Maturity: | Nov. 13, 2059
|
| Interest rate: | 7.2%
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| Call: | Nov. 13, 2019
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