UOB Malaysia issues RM600m debt notes under RM8b plan

UOB Malaysia CEO Wong Kim Choong said the bank was pleased with the strong demand for its debut offering under the RM8bil MTN.

KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd has issued RM600mil Basel III-compliant tier two subordinated medium term notes (MTN) at a fixed coupon rate of 4.80%. 

It said the notes were the first bond issuance under its RM8bil senior and subordinated MTN proramme and rated AA1 by RAM Rating Services Bhd.

The bank said the MTN was increased from an initial target of RM500mil where the issuance was 2.5 times subscribed with orders exceeding RM1.5bil. 

“Strong investor demand also saw the notes priced at the lower end of the initial price guidance range with a fixed coupon rate of 4.80%. UOB Malaysia plans to use the net proceeds from the issuance for general business purposes,” it said.

UOB Malaysia CEO Wong Kim Choong said the bank was pleased with the strong demand for its debut offering under the RM8bil MTN. 

“The strong credit rating, tight pricing and the oversubscription of these Notes reflect the continued confidence of the investment community in UOB Malaysia’s robust capital position and business fundamentals,” he said.

The notes will be due in 2028 and callable after July 2023. 

UOB Malaysia and HSBC Bank Malaysia Bhd were the joint lead managers for this transaction.