Hong Leong Bank Berhad ("Hong Leong Bank") has successfully completed its issuances of Tier 2 Subordinated Debt ("Sub Debt") of RM1.0 billion and Non-Innovative Tier 1 Stapled Securities ("NIT-1 Stapled Securities") of RM1.4 billion respectively on 5 May 2011.
The Sub Debt is rated AA2 while the NIT-1 Stapled Securities is rated AA3 by RAM Rating Services Berhad.
The Sub Debt, with a maturity of 10 years and callable at the end of year 5 and on each subsequent coupon payment date, pays a semi annual coupon of 4.35% p.a., while the NIT-1 Stapled Securities, which is perpetual in nature and callable at the end of year 5 and on each coupon payment date, pays a semi annual coupon of 5.05% p.a. The call options on both the Sub Debt and the NIT-1 Stapled Securities shall be subject to the approval of Bank Negara Malaysia.
"Despite the extremely short book building period of less than one day, both the Sub Debt and NIT-1 Stapled Securities were very well executed and received extremely encouraging response from a wide array of investors totalling over 30 accounts each for both the Sub Debt and NIT-1 Stapled Securities. The final pricing for the Sub Debt came in at the lower end of the initial price guidance and as for the NIT-1 Stapled Securities, we actually priced it inside the initial price guidance." says Yvonne Chia, the Group Managing Director of Hong Leong Bank Berhad.
" Overall, we are very pleased with the results and the efforts by the Joint Lead Managers. The success of the transaction is also a reflection of investors' confidence in Hong Leong Bank, and its positive outlook going forward." adds Yvonne Chia.
CIMB Investment Bank Berhad and Hong Leong Investment Bank Berhad are the appointed Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers for both the Sub Debt and NIT-1 Stapled Securities.
Press Release - 05/05/2011