Others

Sep 10, 2014 Back
Type Announcement
Subject OTHERS
Description MALAYAN BANKING BERHAD’S (“MAYBANK”)
1. ISSUANCE OF BASEL III-COMPLIANT ADDITIONAL TIER 1 CAPITAL SECURITIES (“AT1CS”) OF RM3.5 BILLION IN NOMINAL VALUE PURSUANT TO AN ADDITIONAL TIER 1 CAPITAL SECURITIES PROGRAMME OF UP TO RM10.0 BILLION AND/OR ITS FOREIGN CURRENCY EQUIVALENT IN NOMINAL VALUE (“AT1CS PROGRAMME”) AND
2. PARTIAL REDEMPTION OF NON-INNOVATIVE TIER 1 CAPITAL OF RM3.437 BILLION IN NOMINAL VALUE COMPRISING NON-CUMULATIVE PERPETUAL CAPITAL SECURITIES ISSUED BY MAYBANK WHICH ARE STAPLED TO SUBORDINATED NOTES ISSUED BY CEKAP MENTARI BERHAD, A WHOLLY-OWNED SUBSIDIARY OF MAYBANK (“NIT1 CAPITAL”)

We refer to our earlier announcement dated 19 August 2014 in respect of the establishment of the AT1CS Programme by Maybank. On behalf of Maybank, Maybank Investment Bank Berhad (“Maybank IB”) is pleased to announce that Maybank has completed its first issuance of Basel III-compliant AT1CS of RM3.5 billion in nominal value (“AT1CS Issuance”) pursuant to the AT1CS programme of up to RM10.0 billion and/or its foreign currency equivalent in nominal value on 10 September 2014. As of the date of this announcement, the AT1CS Issuance is the first Basel III compliant Tier 1 issuance in Malaysia.

In addition, we are also pleased to announce that Maybank has completed a partial redemption of RM3.437 billion in nominal value of its existing NIT1 Capital on 10 September 2014. The NIT1 Capital was issued in June 2008.

The details of the AT1CS Issuance are summarised as follows:

(a)

Issuer

:

Maybank

(b)

Issue Date

:

10 September 2014

(c)

Nominal Amount

:

RM3,500,000,000.00 (Ringgit Malaysia Three Billion Five Hundred Million)

(d)

Tenure

:

Perpetual Non-Callable 5 years

(e)

Call Date

:

First call date on 10 September 2019 and thereafter on every coupon payment date

(f)

Coupon Rate

:

5.30% per annum

(g)

Rating 

:

AA3 (RAM Rating Services Berhad)

The AT1CS will qualify as Additional Tier 1 Capital of Maybank for the purpose of Bank Negara Malaysia’s Capital Adequacy Framework (Capital Components) issued on 28 November 2012 (“BNM Capital Adequacy Framework”). Since 1 January 2013, the NIT1 Capital has been gradually phased out pursuant to the transitional arrangements under the BNM Capital Adequacy Framework. The partial redemption of the NIT1 Capital and issuance of the AT1CS therefore limit the amortization impact of NIT1 Capital that is being phased out, alleviate inefficiency in the capital structure, optimize capital cost and enhance the regulatory capital base of Maybank.

This announcement is dated 10 September 2014.

 

Announcement Info

Company Name MALAYAN BANKING BERHAD  
Stock Name MAYBANK    
Date Announced 10 Sept 2014  
Category General Announcement
Reference No MI-140910-59379