Hong Leong Bank Berhad (HLB) has completed the issuance of RM400 million in nominal value of Tier 2 subordinated notes under its multi-currency Tier 2 subordinated notes programme (HLB T2 Programme), according to a filing with Bursa Malaysia.
The issuance was split into two tranches. Tranche 6 Series 1 totalled RM75 million with a 10-year tenure and carries a coupon rate of 3.78 per cent per annum. It is non-callable for the first five years and callable from 20 June 2030 onwards on any subsequent coupon payment date. Tranche 6 Series 2, amounting to RM325 million, has a 12-year tenure and offers a coupon rate of 3.85 per cent per annum. It is non-callable for the initial seven years and callable from 21 June 2032 on any subsequent coupon payment date.
Both tranches will pay interest semi-annually.
HLB stated that the proceeds raised will be deployed for working capital, general banking activities, corporate purposes, and the refinancing of existing borrowings or subordinated debt, including any outstanding notes issued under the HLB T2 Programme.
The issuance has been accorded an AA1 rating by RAM Rating Services Berhad, reaffirming the bank’s strong credit profile and the quality of the instrument within the Malaysian capital market.
-Bernama
