HLB Tier 2 Subordinated Notes Issuance

Hong Leong Bank Berhad ("HLB") has successfully completed its issuance of Tier 2 Subordinated Notes ("Sub Notes") of RM1.5 billion on 22 June 2012.

The Sub Notes are rated AA2 by RAM Rating Services Berhad.

The Sub Notes has a maturity date of 12 years from the issue date and are callable on any interest payment date falling on or after the 7 th anniversary of the issue date. A semi-annual coupon of 4.50% per annum is payable on the Sub Notes. The exercise of the call option on the Sub Notes shall be subject to the approval of Bank Negara Malaysia.

"Despite a number of large bond issuances coming to the market, the Sub Notes received an encouraging response from a wide range of investors totalling over 30 accounts, with most orders coming from asset managers and insurers." says Datuk Yvonne Chia, the Group Managing Director of Hong Leong Bank Berhad.

"The order book was well executed and we are very pleased with the results as well as 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 Datuk Yvonne Chia.

The net proceeds from the Sub-Notes will be utilised for working capital and general banking purposes.CIMB Investment Bank Berhad, Hong Leong Investment Bank Berhad and Maybank Investment Bank Berhad are the appointed Joint Principal Advisers, Joint Lead Arrangers and Joint Lead Managers for the Sub Notes.

-END-Press Release - 22/06/2012