We refer to our earlier announcement dated 10 May 2012 in respect of the first issuance on that same date of RM2.1 billion of Subordinated Notes under a Subordinated Note Programme of up to RM7.0 billion in nominal value (“Subordinated Note Programme”) by Malayan Banking Berhad (“Maybank”). Maybank had on 19 December 2013 obtained the approval from Bank Negara Malaysia (“BNM”) for the revision of the principal terms and conditions (“PTC”) of the Subordinated Note Programme (in respect of Subordinated Notes to be issued in the future) to comply with BNM’s Capital Adequacy Framework (Capital Components) issued on 28 November 2012 (“BNM Capital Adequacy Framework”).

The revision to the PTC in respect of Subordinated Notes to be issued in the future includes, amongst others, insertion of a contingent write-off clause, where at the point of a Trigger Event (as defined below), Maybank shall irrevocably, without the consent of the holders of the Subordinated Notes, write-off the Subordinated Notes in whole or in part, if so required by BNM and/or Malaysia Deposit Insurance Corporation (“PIDM”) at their full discretion.

A “Trigger Event” shall be the earlier of the following:

(i)            the Relevant Malaysian Authority (the “Relevant Malaysian Authority” means BNM, jointly with PIDM) notifies Maybank in writing that the Relevant Malaysian Authority is of the opinion that a write-off is necessary, without which Maybank would cease to be viable; or

(ii)           the Relevant Malaysian Authority publicly announces that a decision has been made by BNM, PIDM, or any other federal or state government in Malaysia, to provide a capital injection or equivalent support to Maybank, without which Maybank would cease to be viable.

Maybank had on 18 November 2013 obtained the confirmation from RAM Rating Services Berhad that the revision to the Subordinated Note Programme in respect of Subordinated Notes to be issued in the future would not have any impact to the AA1 rating and the stable outlook of the Subordinated Note Programme.

The Board of Directors of Maybank is pleased to announce that Maybank has on 29 January 2014 completed the issuance of a RM1.6 billion Basel III-compliant Tier 2 Subordinated Notes under the revised Subordinated Note Programme via book building.

The issuance details are summarized as follows:

The Subordinated Notes will qualify as Tier 2 capital of Maybank in accordance with the BNM Capital Adequacy Framework.

This announcement is dated 29 January 2014.