KUALA LUMPUR, MALAYSIA
Maybank is pleased to announce that it had successfully priced its SGD1.0 billion subordinated notes (“SGD Subordinated Notes”). This issuance is Maybank’s maiden issue under the US$2.0 billion Multicurrency Medium Term Note Programme, which was jointly arranged by HSBC, Maybank Investment Bank Berhad and Standard Chartered Bank (SCB).
The SGD Subordinated Notes is the largest single tranche transaction for a Malaysian borrower in Singapore and received overwhelming response from investors, resulting in over subscription of 1.7 times.
Dato’ Sri Abdul Wahid Omar, the President and CEO of Maybank commented: “We are very pleased with the outcome of this transaction. The strong support and demand from the investors as evidenced by the benchmark SGD1.0 billion issue size demonstrates investors’ confidence in the bank’s performance and prospects, its prudent capital management, sound asset quality as well as its continued market leadership and franchise as Malaysia’s leading financial institution and an emerging regional leader”.
The SGD Subordinated Notes was structured on a 10 Non-Call 5-year basis and was priced at 3.80% and will qualify as Tier-2 Capital for Maybank. As this is a subordinated issue, the rating assigned is BBB+ by both Standard & Poor’s Rating Services and Fitch Ratings.
The SGD Subordinated Notes are jointly lead managed by DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited (“HSBC”), Kim Eng Securities Pte. Ltd., Oversea-Chinese Banking Corporation Limited and Standard Chartered Bank (“SCB”).
The proceeds raised from the SGD Subordinated Notes will be utilised to fund Maybank’s working capital, general banking and other corporate purposes. The settlement date of the issue is 28th April 2011.