HLB Completes Inaugural US Dollar Senior Unsecured Bonds

Hong Leong Bank Berhad ("Hong Leong Bank") has completed its inaugural US dollar Senior Unsecured Bonds issuance of USD300 million ("Senior Bonds").

The Senior Bonds are rated A3 by Moody's Investors Service and BBB+ by Fitch Ratings. The Senior Bonds will have a tenor of five years, maturing on March 17, 2016. The Senior Bonds will pay a coupon of 3.75% p.a. which is equivalent to a yield to investors of 3.803% (5-year US Treasury + 165bps), the lowest-ever yield for a five-year US dollar issue from a Malaysian name.

"We are very pleased that the Senior Bonds received overwhelming response from a wide array of investors. Final pricing came well within the tighter end of the price guidance of around the 5-year US Treasury + 175bps area. It is the first US dollar senior bond deal from a Malaysian bank and hence sets a benchmark." says Yvonne Chia, the Group Managing Director of Hong Leong Bank Berhad.

"The success of the transaction is also a reflection of investors' confidence in Hong Leong Bank and our business model. Clearly, this success reflects very well on the financial resilience and credit strengths, as well as the strong liquidity franchise of Hong Leong Bank. Overall, we are very pleased with the results and the efforts by the Joint Bookrunners" adds Yvonne Chia.

The proceeds from the issuance of the Senior Bonds will be used for working capital and general banking purposes. The Senior Bonds will be listed on the Singapore Exchange.

Barclays Bank PLC, The Royal Bank of Scotland plc and Standard Chartered Bank are Joint Lead Managers and Bookrunners for the Senior Bonds. CIMB Investment Bank Berhad and Hong Leong Investment Bank Berhad are appointed Co-Managers.

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Note:

This material is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). This material is not an offer of securities for sale into the United States, Canada or Japan. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("the Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the Securities Act), except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States

Press Release - 18/02/2011