The Board of Directors of Malayan Banking Berhad (“Maybank”) is pleased to announce that Maybank has on 13 September 2012 successfully priced its US$800.0 million of Regulation S Tier 2 Capital Subordinated Notes (“Subordinated Notes” or the “Transaction”) under its US$5.0 billion Multicurrency Medium Term Note Programme.

The Transaction received strong demand from investors and was more than 5.6 times oversubscribed. The Subordinated Notes were priced at 5-year US Treasury + 260 bps or a yield of 3.254% and will pay a coupon of 3.25% per annum. The Subordinated Notes will have a tenure of 10 years from the issue date on a 10 non-callable 5 basis, maturing on 20 September 2022.

The Subordinated Notes have been accorded a rating of BBB+ by Standard & Poor’s Ratings Services and are also expected to be rated BBB+ by Fitch Ratings. The Subordinated Notes are expected to be listed on the Singapore Exchange Securities Trading Limited and Labuan International Financial Exchange Inc.

The net proceeds from the issuance of the Subordinated Notes will be utilised by Maybank to fund its working capital, general banking and for other corporate purposes. The Subordinated Notes are expected to qualify as Lower Tier 2 capital as per the Bank Negara Malaysia’s guidelines and be eligible for Basel III transitional treatment.

Maybank Investment Bank Berhad, the Hongkong and Shanghai Banking Corporation Limited Offshore Banking Unit Labuan and Nomura International plc were the Joint Lead Managers and Bookrunners for the Subordinated Notes.

For further information, please refer to the press release.

This announcement is dated 14 September 2012.

Note:

 This material is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia).  This material is not an offer of securities for sale into the United States, Canada or Japan.  The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("the Securities Act"), and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.  No public offering of securities is being made in the United States.