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HONG LEONG BANK ISSUES RM1 BLN TIER 2 SUBORDINATED NOTES

11/06/2024 07:05 PM

KUALA LUMPUR, June 11 (Bernama) -- Hong Leong Bank Bhd (HLB) has issued RM1.0 billion in nominal value of Tier 2 subordinated notes (HLB Sub-Notes), pursuant to its multi-currency HLB T2 Programme.

In a filing with Bursa Malaysia, the bank said the issuance has a coupon rate of 4.05 per cent per annum, a tenure of 10 years, and is non-callable for five years.

It said that the coupon payment period is every six months, with the call date on June 11, 2029, and every coupon payment date thereafter.

“The proceeds of RM400 million from the HLB Sub-Notes were used to subscribe for RM400 million Tier 2 subordinated sukuk Murabahah (HLISB T2 Sukuk Murabahah) issued by its wholly-owned subsidiary, Hong Leong Islamic Bank Bhd (HLISB) on even date. 

“The HLISB T2 Sukuk Murabahah was issued according to HLISB’s multi-currency perpetual subordinated sukuk programme,” it said. 

HLB added the remaining proceeds from the HLB Sub-Notes shall be utilised, without limitation, for working capital, general banking and other corporate purposes, as well as the refinancing of existing borrowings incurred, subordinated debt issued by HLB and any existing subordinated notes issued under the HLB T2 Programme. 

RAM Rating Services Bhd has assigned an AA1 rating to the sub-notes programme.

-- BERNAMA


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