Hong Leong Bank joins ranks of companies raising funds

Building reserves: HLB branch at Light Street in Penang. The group has announced plans to undertake a renounceable rights issue of new HLB shares to raise gross proceeds of up to RM3bil to further strengthen its capital position.

A TREND is emerging among Malaysian banks – since last year, several have made cash calls and more may join the bandwagon. Hong Leong Bank Bhd (HLB) is the latest among financial institutions to make a cash call.

It joins the ranks of Public Bank Bhd (PBB), which completed a fund-raising exercise last year, and RHB Capital Bhd (RHB Cap) that is in the midst of completing a similar exercise. Malaysia Building Society Bhd (MBSB) has stated that it is looking at a cash call.