We refer to our earlier announcement dated 30 May 2011 in respect of the approval obtained from the Securities Commission and Bank Negara Malaysia (“BNM”) for the proposed establishment of the Subordinated Note Programme of up to RM3.0 billion in nominal value (“Subordinated Note Programme”) and the issue of Subordinated Notes thereunder. 

The Board of Directors of Malayan Banking Berhad (“Maybank”) is pleased to announce that Maybank had on 15 August 2011 issued RM2.0 billion of Subordinated Notes (“Subordinated Notes”) under the Subordinated Note Programme, which has been accorded a long term rating of AA1 by RAM Rating Services Berhad. The Subordinated Notes issued shall have tenure of 10 years on a 10 non-callable 5 basis. The Subordinated Notes, which will mature on 16 August 2021, is callable on 15 August 2016 and on every interest payment date thereafter.

The Subordinated Notes offering was priced at 4.10% and had received an overwhelming response from investors resulting in an over subscription by over 2.125 times. In view of the strong demand, Maybank had upsized the issue size to RM2.0 billion from the initial issue size of RM1.5 billion.

The Subordinated Notes issued under the Subordinated Note Programme will qualify as Tier 2 capital of Maybank subject to compliance with the requirements as specified in the Risk Weighted Capital Adequacy Framework and Capital Adequacy Framework for Islamic Banks by BNM.

The net proceeds from the issuance of the Subordinated Notes will be utilised to fund Maybank’s working capital, general banking and other corporate purposes.

This announcement is dated 15 August 2011.