The Board of Directors of Malayan Banking Berhad (“Maybank”) is pleased to announce that Maybank had on 28 December 2011 made a subsequent issuance of RM1.0 billion of Subordinated Notes (“Subordinated Notes”) under its Subordinated Note Programme of up to RM3.0 billion in nominal value (“Subordinated Note Programme”). 

The Subordinated Notes issued comprise the following tranches:

1.         RM750.0 million of Subordinated Notes with tenure of 10 years on a 10 non-callable 5 basis (“Tranche 1”); and
2.         RM250.0 million of Subordinated Notes with tenure of 12 years on a 12 non-callable 7 basis (“Tranche 2”).

Tranche 1 and Tranche 2 of the Subordinated Notes were priced at 3.97% and 4.12% respectively, and had received strong support and interest from investors resulting in an over subscription of over 1.47 times for Tranche 1 and 1.48 times for Tranche 2.

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 Bank Negara Malaysia.

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 28 December 2011.