KUALA LUMPUR (June 19): Hong Leong Bank Bhd has issued RM500 million in nominal value of Tier 2 subordinated notes, pursuant to its multi-currency subordinated notes programme of up to RM10 billion.

In a Bursa Malaysia filing on Monday (June 19), the bank said the debt notes have a 10-year tenure with a five-year non-callable period, equipped with a 4.2% per annum coupon rate — to be paid on a semi-annual basis.

The subordinated notes are rated AA1 by RAM Rating Services Bhd, according to Hong Leong Bank.

“Proceeds from the subordinated notes shall be utilised, without limitation, for Hong Leong Bank’s working capital, general banking and other corporate purposes, and the refinancing of any existing borrowings incurred, subordinated debt issued by Hong Leong Bank’s and/or any existing subordinated notes issued under the multi-currency Tier 2 subordinated notes programme,” it said.

As at end-March, Hong Leong Bank had RM1.52 billion in liabilities listed under Tier 2 subordinated bonds, while cash and short-term funds stood at RM11.97 billion.

Hong Leong Bank shares closed 20 sen or 1.08% higher at RM18.70, giving the bank a market capitalisation of RM40.54 billion.