Wednesday, December 28, 2011

Maybank issues RM1 bln subordinated notes

KUALA LUMPUR (Dec 28): MALAYAN BANKING BHD [] had on Wednesday issued RM1 billion of subordinated notes in two tranches of RM750 million and RM250 million.

It said the issuance of the RM1 billion notes was under its subordinated note programme of up to RM3 billion in nominal value.

Maybank said the first tranche of RM750 million of subordinated notes had a tenure of 10 years on a 10 non-callable five basis and the second tranche of RM250 million notes had a tenure of 12 years on a 12 non-callable seven basis.

'Tranche 1 and Tranche 2 of the Subordinated Notes were priced at 3.97% and 4.12% respectively, and had received strong support and interest from investors resulting in an over subscription of over 1.47 times for Tranche 1 and 1.48 times for Tranche 2,' it said

Maybank said these notes would qualify as Tier 2 capital of Maybank subject to compliance with the requirements as specified in the risk weighted capital adequacy framework and capital adequacy framework for Islamic banks by Bank Negara Malaysia.

It added the net proceeds from the issuance of these notes would be used to fund Maybank's working capital, general banking and other corporate purposes.

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