Hong Leong completes US$300mn senior unsecured bonds issue

The proceeds of the Senior Bonds, rated A3 by Moody’s and BBB+ by Fitch, would be used for working capital and general banking purposes.

Hong Leong Bank Bhd (HLB) has completed its inaugural US dollar Senior Unsecured Bonds of US$300 million (Senior Bonds).

The Senior Bonds were rated A3 by Moody’s Investors Service and BBB+ by Fitch Ratings. The Senior Bonds would have a tenor of five years, maturing on March 17, 2016. It would pay a coupon of 3.75 per cent per annum, equivalent to a yield to investors of 3.803 per cent, the lowest — ever yield for a five-year US dollar issue from a Malaysian name.

“Final pricing came well within the tighter end of the price guidance of around the five-year US Treasury plus 175 basis points area. It is the first US dollar senior bond deal from a Malaysian bank and hence sets a benchmark.” said HLB group managing director Yvonne Chia in a press statement on Friday.

“The success of the transaction is also a reflection of investors’ confidence in Hong Leong Bank and our business model. Clearly, this success reflects very well on the financial resilience and credit strengths as well as the strong liquidity franchise of Hong Leong Bank. Overall, we are very pleased with the results and the efforts by the joint bookrunners” she added.

View the full story in The Borneo Post.