PROPOSED ISLAMIC SUBORDINATED BONDS ISSUANCE OF RM1.5 BILLION WITH TENURE OF 12 YEARS FROM ISSUE DATE ON A 12 NON-CALLABLE 7 BASIS ("the Islamic Subordinated Bonds")

May 02, 2006 Back
Type Announcement
Subject MALAYAN BANKING BERHAD
- PROPOSED ISLAMIC SUBORDINATED BONDS ISSUANCE OF RM1.5 BILLION WITH TENURE OF 12 YEARS FROM ISSUE DATE ON A 12 NON-CALLABLE 7 BASIS ("the Islamic Subordinated Bonds")

Contents :

Aseambankers Malaysia Berhad (“Aseambankers”) on behalf of the Board of Directors of Malayan Banking Berhad (“Maybank”) is pleased to announce that the abovesaid Islamic Subordinated Bonds has been approved by the Securities Commission on 27 April 2006.

This would be the second Islamic subordinated bond issuance by Maybank of which the proceeds raised shall be utilised to fund Maybank’s Islamic financial activities. The Islamic Subordinated Bonds is structured based on the Islamic principal of Bai-Bithaman Ajil.

The Islamic Subordinated Bonds has received Bank Negara Malaysia’s approval to qualify as Tier 2 capital for purposes of Malaysian capital adequacy regulation and will provide Maybank with an efficient source of capital for future growth in line with Maybank’s capital management strategy. The Islamic Subordinated Bonds shall be issued by way of private placement.

Under the 12 non-callable 7 basis feature, Maybank shall have the option to redeem the Islamic Subordinated Bonds on the 7th anniversary or any semi-annual date thereafter. Should Maybank not exercise its option to redeem, the holders of the Islamic Subordinated Bonds will be entitled to a permissible step-up profit rate from the beginning of the 8th year to the final maturity date.

 

Announcement Info

Company Name MALAYAN BANKING BERHAD  
Stock Name MAYBANK    
Date Announced 2 May 2006  
Category General Announcement
Reference No CU-060502-61372