Hong Leong Bank issues RM400mil Tier 2 subordinated notes
KUALA LUMPUR: Hong Leong Bank Bhd (HLB) has issued RM400 million in nominal value of Tier 2 subordinated notes under its multi-currency Tier 2 subordinated notes programme (HLB T2 Programme).
In a filing with Bursa Malaysia today, the bank said the issuance comprises two tranches: Tranche 6 Series 1, amounting to RM75 million and Tranche 6 Series 2 totalling RM325 million.
"Tranche 6 Series 1, with a tenure of 10 years, has a coupon rate of 3.78 per cent per annum, and is non-callable for five years, while Tranche 6 Series 2 has a tenure of 12 years, a coupon rate of 3.85 per cent per annum, and is non-callable for seven years.
"Both tranches pay coupons every six months, with Tranche 6 Series 1 callable from June 20, 2030, and Tranche 6 Series 2 from June 21, 2032, on any subsequent coupon payment date," it said.
HLB added that the proceeds from the subordinated notes will be utilised, without limitation, for its working capital, general banking, and other corporate purposes, and the refinancing of any existing borrowings incurred, subordinated debt issued by the bank and/or any existing subordinated notes issued under the HLB T2 Programme.
RAM Rating Services Bhd has assigned an AA1 rating for the subordinated notes programme. - Bernama
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