| Type | Announcement |
| Subject | Malayan Banking Berhad (“Maybank” or the “Bank”) and Cekap Mentari Berhad (formerly known as Cekap Mentari Sdn Bhd) (“CMB”)(collectively the “Issuers”) Proposed Issuance of, Offer for Subscription or Purchase of, or Invitation to Subscribe for, or Purchase of Non-Innovative Tier 1 Capital (“NIT1 Capital”) of up to RM3.5 Billion in Nominal Value comprising of: (1) Non-Cumulative Perpetual Capital Securities (“NCPCS”) to be issued by Maybank (“NCPCS Issuer”) which are stapled to: (2) Subordinated Notes (“Sub Notes”) to be issued by CMB (“Sub Notes Issuer”) (collectively “Stapled Securities” or “Proposal”) |
| Contents | INTRODUCTION We refer to our earlier announcements dated 2 June 2008 in respect of the long term rating of AA2 being accorded by RAM Rating Services Berhad (“RAM”) for the NIT1 Capital and 4 June 2008 in respect of the acquisition of CMB by Maybank. The Board of Directors of Maybank is pleased to announce that Maybank has obtained approval from the Securities Commission (“SC”) vide their letter dated 17 June 2008 to issue the NIT1 Capital. DETAILS OFTHE PROPOSAL The NIT1 Capital is structured in accordance with the Guidelines on Non-Innovative Tier 1 Capital Instruments issued by Bank Negara Malaysia (“BNM”). The NIT1 Capital will be issued in the form of Stapled Securities, which will comprise of the issuance of NCPCS by Maybank which will be stapled to Sub Notes to be issued by CMB, a wholly-owned subsidiary of Maybank. The NCPCS will be perpetual and have no final maturity. Maybank shall have the option to redeem the NCPCS on the tenth (10th) anniversary year from the date of first issuance, or any distribution date thereafter. The Stapled Securities are not guaranteed and will constitute direct, unsecured and subordinated obligations of the Maybank Group. Claims in respect of the NCPCS will rank pari passu and without preference among themselves, other Tier 1 capital securities of Maybank and the most junior class of preference shares in Maybank (if any), but in priority to the ordinary shareholders in Maybank. Claims in respect of the Sub Notes shall rank pari passu and without preference among themselves and with the most junior class of preference shares (if any) of CMB, but in priority to the ordinary shares in CMB. The NIT1 Capital has been assigned a final rating of AA2 by RAM and the proceeds of the Stapled Securities shall be utilized for Maybank’s working capital, general banking and other corporate purposes. The Stapled Securities will not be listed on Bursa Securities or any other stock exchange. This announcement is dated 18 June 2008. |
| Company Name | MALAYAN BANKING BERHAD |
| Stock Name | MAYBANK |
| Date Announced | 18 Jun 2008 |
| Category | General Announcement |
| Reference No | CU-080618-65471 |