Published: Friday June 22, 2012 MYT 7:08:00 PM
Hong Leong Bank completes RM1.5b notes issuance, coupon rate 4.5%
KUALA LUMPUR: Hong Leong Bank Bhd completed its issuance of tier 2 subordinated notes of RM1.5bil on Friday.
It said the sub notes, rated AA2 by RAM Rating Services Bhd, has a semi-annual coupon of 4.50% per annum.
Hong Leong Bank said the sub notes' maturity date was 12 years from the issue date and were callable on any interest payment date falling on or after the 7th anniversary of the issue date.
The exercise of the call option on the sub notes would be subject to Bank Negara Malaysia's approval.
Hong Leong Bank group managing director Datuk Yvonne Chia said the sub notes received an encouraging response from a wide range of investors totalling over 30 accounts, with most orders from asset managers and insurers.
"The order book was well executed and we are very pleased with the results as well as the efforts by the joint lead managers. The success of the transaction is also a reflection of investors' confidence in Hong Leong Bank and its positive outlook going forward," said Chia.
Hong Leong Bank would use the net proceeds from the sub-notes for working capital and general banking purposes.