| Type | Announcement |
| Subject | Proposed Issuance of, Offer for Subscription or Purchase of, or Invitation to Subscribe for, or Purchase Innovative Tier 1 (“IT1”) Capital Securities (“IT1CS”) Programme of up to RM4.0 Billion and/or its Foreign Currency Equivalent in Nominal Value (“IT1CS Programme” or the “Proposal”) by Malayan Banking Berhad (“Maybank” or “Issuer”). |
| Contents | 1. INTRODUCTION We refer to our earlier announcement dated 2 June 2008 in respect of the long term rating of AA2 being accorded by RAM Rating Services Berhad for the IT1CS Programme. The Board of Directors of Maybank is pleased to announce that Maybank has obtained approval from the Securities Commission (“SC”) vide their letter dated 4 June 2008 to issue the IT1CS Programme. 2. DETAILS OF THE PROPOSED PROGRAMME The IT1CS has been structured to comply with Bank Negara Malaysia’s (“BNM”) Guidelines on Innovative Tier 1 capital instruments (“BNM Guidelines”). Based on the BNM Guidelines, a limit of 50% of the total Tier 1 capital (net of goodwill) is imposed on the total of IT1 and Non-Innovative Tier 1 (“NIT1”) capital instruments issued, with IT1 capital limited at 15% of the total Tier 1 capital (net of goodwill). Any IT1 balance in excess of the 15% limit will be included as upper Tier 2 capital for computation of the Issuer’s Risk Weighted Capital Ratio (“RWCR”). The IT1CS will be issued in the form of capital securities and is to be treated as a debenture for accounting and tax purposes, and for the purpose of submission to the SC. The IT1CS will be issued via an IT1CS Programme. The IT1CS Programme would have a sixty five (65)-year tenure from the date of the first issuance. Maybank shall have the option to redeem, in whole and not in part, any IT1CS issued on the First Optional Redemption Date of each IT1CS issued, which is a date falling no less than 10 years or no more than 15 years from the respective IT1CS date of first issuance, and every interest payment date thereafter, subject to prior approval of BNM. The proceeds of the IT1CS Programme shall be used for Maybank’s working capital, general banking and other corporate purposes. This announcement is dated 5 June 2008 |
| Company Name | MALAYAN BANKING BERHAD |
| Stock Name | MAYBANK |
| Date Announced | 5 Jun 2008 |
| Category | General Announcement |
| Reference No | MM-080605-66517 |