Thursday, May 5, 2011

Hong Leong Bank completes issuance of RM2.4b debt notes

KUALA LUMPUR: HONG LEONG BANK BHD [] has successfully completed its issuances of debt notes totaling RM2.4 billion.

It said on Thursday, May 5 the debt notes were the Tier 2 subordinated debt of RM1.0 billion and non-innovative Tier 1 stapled securities (NIT-1 Stapled Securities) of RM1.4 billion respectively on May 5.

The sub debt is rated AA2 while the NIT-1 Stapled Securities is rated AA3 by RAM Rating Services Bhd.

Hong Leong Bank said the sub debt had a maturity of 10 years and callable at the end of year five and on each subsequent coupon payment date. It pays a semi annual coupon of 4.35% per annum.

As for the NIT-1 stapled securities, which is perpetual in nature and callable at the end of year five and on each coupon payment date, pays a semi annual coupon of 5.05% per annum.

The call options on both the Sub Debt and the NIT-1 Stapled Securities shall be subject to the approval of Bank Negara Malaysia.

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