KUALA LUMPUR: Hong Leong Bank Bhd
(HLB) has issued RM640mil in Tier 2 subordinated notes under its multi-currency Tier 2 subordinated notes programme.
In a filing with Bursa Malaysia, the bank said the issuance comprised two series: RM350mil with a 10-year tenure that is callable after five years, and RM290mil with a 12-year tenure that is callable after seven years.
The first series carries a coupon rate of 3.90% per annum, while the second offers 4.00% per annum. Both series will pay coupons semi-annually.
“Proceeds from the HLB sub-notes shall be utilised, without limitation, for HLB's working capital, general banking and other corporate purposes, and the refinancing of any existing borrowings incurred, subordinated debt issued by HLB and/or any existing subordinated notes issued under the multi-currency Tier 2 subordinated notes programme,” it said.
The subordinated notes are rated AA1 by RAM Rating Services Bhd.
