Public Bank issues eighth tranche of sub-notes worth RM2bil

KUALA LUMPUR: Public Bank Bhd (PBB) today issued the eighth tranche of the subordinated medium term notes (Sub-Notes) programme amounting to RM2.0 billion.

In a filing with Bursa Malaysia, it said the issuance has a coupon/interest rate of 3.93 per cent per annum, and tenure of 10 years, and non-callable for five years.

The maturity date of the Sub-Notes programme on April 7, 2032, while the call date is on April 7, 2027.

"The proceeds from the Sub-Notes shall be made available to PBB, without limitation, for its working capital, general banking and other corporate purposes," it said.

RAM Rating Services Bhd has assigned AA1 rating to the Sub-Notes programme.

"The Sub-Notes will qualify as Tier 2 capital for the computation of the regulatory capital of PBB and PBB Group in accordance with the Capital Adequacy Framework (Capital Components) issued by Bank Negara Malaysia (BNM)," said PBB.

It also said that the issuance of the eighth tranche of Sub-Notes under the Sub-Notes Programme will not have any effect on the issued and paid-up share capital of PBB and the shareholdings of substantial shareholders of PBB.

"The issuance is not expected to have any material effect on the earnings of PBB and the PBB Group, the consolidated net assets of the PBB Group and the dividend rate of PBB,” said the bank.

PBB had on July 11, 2013, obtained approvals from BNM and the Securities Commission Malaysia to establish the Sub-Notes Programme. - Bernama