KUALA LUMPUR: MNRB Holdings Bhd
says its subsidiary Malaysian Reinsurance Bhd (Malaysian Re) has issued RM200mil of subordinated medium-term notes (MTN) for a 10-year tenor, non-callable for the first five years.
The tranche is part of Malaysian Re’s MTN programme of RM800mil, it said in a filing with Bursa Malaysia.
The proceeds of the issuance, which has a 5.21% coupon rate per annum, would be utilised as working capital.
“The subordinated MTN qualifies as Tier-2 capital under Bank Negara’s risk-based capital framework for insurers and will further strengthen its capital base to support its medium-term business remodelling plan,” it said.
The issuance has been rated AA3 by RAM Services Bhd.
Maybank Investment Bank Bhd (Maybank IB) is the principal adviser and lead arranger for the MTN programme.
Meanwhile, Affin Hwang Investment Bank Bhd, CIMB Investment Bank Bhd, and Maybank IB are the joint lead managers for the issuance. — Bernama
