Saturday September 15, 2012
Maybank Tier 2 capital issue oversubscribed by 5.6 times
KUALA LUMPUR: Malayan Banking Bhd's (Maybank) RM2.44bil (US$800mil) Regulation S Tier 2 capital subordinated notes under the RM15.23bil (US$5bil) multi-currency medium-term notes programme has been oversubscribed by 5.6 times its order book which was well diversified and allocated to high-quality investors.
Maybank said in a statement that this was the largest Regulation S US Dollar Lower Tier 2 capital issuance by an Asian bank outside Japan and also marked the largest ever US dollar bond issuance by a local financial institution.
The issuance carries a rating of BBB+ by Standard & Poor's Ratings Services and is also expected to be rated BBB+ by Fitch Ratings.
“This is a landmark issuance among Malaysian financial institutions and the strong order book and fine pricing is testimony to international investors' recognition of Maybank's financial strength as well as their support of our credit standing,” said Maybank chief executive officer Datuk Seri Abdul Wahid Omar.
“Investors have responded enthusiastically to the opportunity to subscribe to our subordinated notes issuance and this exhibits the confidence that they have in Maybank and its future prospects. The book size was robust with over RM13.71bil (US$4.5bil) in orders drawn from a well diversified investor base in excess of 200 accounts,” he added.
The subordinated notes will have a tenure of 10 years from the issue date. They are expected to be listed on the Singapore Exchange Securities Trading Ltd and Labuan International Financial Exchange Inc.