Hong Leong Bank concludes sub debt issuance

Sub debt, whose proceeds to be used for lender's working capital, was 8 times oversubscribed.

Hong Leong Bank Bhd on Tuesday completed its inaugural issuance of RM700 million ($219.61 million) Tier 2 subordinated debt (sub debt), which received overwhelming response from investors.

Group managing director Yvonne Chia said the sub debt was more than eight times oversubscribed with total order exceeding RM5 billion ($1.57 billion).

“The final pricing came in well within the lower end of the initial price guidance of between 4.85 per cent and 5.05 per cent,” she said in a statement.

The sub debt, rated AA2 by RAM Rating Services Bhd, pays a coupon of 4.85 per cent per annum and has a maturity of 10 years.

View the full report in Business Times.