CEO Morning Brief

Hong Leong Bank Issues RM1 Bil Debt Notes

edgeinvest
Publish date: Wed, 12 Jun 2024, 10:51 AM
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TheEdge CEO Morning Brief
Hong Leong Bank Bhd said it has issued RM1 billion in nominal value of Tier 2 subordinated notes which have a 10-year tenure and with five-year non-callable period and carry a coupon rate of 4.05% per annum.

KUALA LUMPUR (June 11): Hong Leong Bank Bhd (KL:HLBANK) said on Tuesday that it has issued RM1 billion in nominal value of Tier 2 subordinated notes, pursuant to its multi-currency Tier 2 subordinated programmes.

In a bourse filing, the bank said the RM1 billion debt notes have a 10-year tenure with a five-year non-callable period and carry a coupon rate of 4.05% per annum.

The coupon payments are scheduled every six months, with the first call date on June 11, 2029. The subordinated notes are rated AA1 by RAM Rating Services Bhd, according to the bank.

According to Hong Leong Bank, RM400 million of the proceeds from the subordinated notes were used to subscribe to RM400 million in Tier 2 subordinated sukuk murabahah issued by its wholly owned subsidiary, Hong Leong Islamic Bank Bhd, on even date.

Meanwhile, the remaining proceeds from the subordinated notes will be used for the bank’s working capital, general banking purposes, other corporate needs, and the refinancing of existing borrowings, subordinated debt issued by the bank, or any existing subordinated notes issued under the programme.

Hong Leong Bank shares closed down two sen or 0.1% at RM19.38, giving the bank a market capitalisation of RM42.01 billion.

Source: TheEdge - 12 Jun 2024

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