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CIMB Bank completes country's 1st RM750 MLN Basel 111- compliant subordinated debt issuance
by Cals Wed 18 Sep 2013, 02:08
CIMB Bank completes country's 1st RM750 MLN Basel 111- compliant subordinated debt issuance
Business & Markets 2013
Written by Bernama
Tuesday, 17 September 2013 19:39
KUALA LUMPUR (Sept 17): CIMB Group Holdings Bhd's 99.99 per cent-owned subsidiary, CIMB Bank Bhd, has completed the country's first RM750 million Basel III-compliant Tier 2 Subordinated Debt (Sub Debt).
It successfully completed the inaugural issuance of the Sub Debt, which isalso the country's first public issue of Basel III-compliant Tier 2 Sub Debt, on Sept 13, 2013.
The RM750 million Sub Debt has a maturity of 10 years and callable at the end of year five and every subsequent semi-annual coupon payment dates thereafter, was priced at a coupon of 4.80 per cent per annum.
A myriad investors comprising insurance companies (47 per cent), asset managers (20 per cent), government agencies (27 per cent) and private banks (seven per cent) participated in this landmark transaction.
"We are very pleased with the results of this deal in terms of both size and price especially given that this is Malaysia's first Basel III-compliant sub debt instrument and markets have been volatile," said Group Chief Executive of CIMB Group, Datuk Seri Nazir Razak.
The transaction was a new milestone for the Malaysian capital market as a new capital-raising avenue has been opened and tested for others to tap in the future, he said in a statement today.
The Sub Debt, rated AA1 by RAM Rating Services Bhd and AA+ by Malaysian Rating Corporation Bhd, has been structured to qualify as a Tier 2 capital for CIMB Bank under Bank Negara Malaysia’s capital adequacy guidelines, which require the Sub Debt to have loss absorption features at point of non-viability of the bank.
Proceeds from the Sub Debt issuance would be used by the bank for its working capital and general banking purposes, he said.
CIMB Investment Bank Bhd is the sole Principal Adviser, Lead Arranger and Lead Manager for the Sub Debt transaction.
Business & Markets 2013
Written by Bernama
Tuesday, 17 September 2013 19:39
KUALA LUMPUR (Sept 17): CIMB Group Holdings Bhd's 99.99 per cent-owned subsidiary, CIMB Bank Bhd, has completed the country's first RM750 million Basel III-compliant Tier 2 Subordinated Debt (Sub Debt).
It successfully completed the inaugural issuance of the Sub Debt, which isalso the country's first public issue of Basel III-compliant Tier 2 Sub Debt, on Sept 13, 2013.
The RM750 million Sub Debt has a maturity of 10 years and callable at the end of year five and every subsequent semi-annual coupon payment dates thereafter, was priced at a coupon of 4.80 per cent per annum.
A myriad investors comprising insurance companies (47 per cent), asset managers (20 per cent), government agencies (27 per cent) and private banks (seven per cent) participated in this landmark transaction.
"We are very pleased with the results of this deal in terms of both size and price especially given that this is Malaysia's first Basel III-compliant sub debt instrument and markets have been volatile," said Group Chief Executive of CIMB Group, Datuk Seri Nazir Razak.
The transaction was a new milestone for the Malaysian capital market as a new capital-raising avenue has been opened and tested for others to tap in the future, he said in a statement today.
The Sub Debt, rated AA1 by RAM Rating Services Bhd and AA+ by Malaysian Rating Corporation Bhd, has been structured to qualify as a Tier 2 capital for CIMB Bank under Bank Negara Malaysia’s capital adequacy guidelines, which require the Sub Debt to have loss absorption features at point of non-viability of the bank.
Proceeds from the Sub Debt issuance would be used by the bank for its working capital and general banking purposes, he said.
CIMB Investment Bank Bhd is the sole Principal Adviser, Lead Arranger and Lead Manager for the Sub Debt transaction.
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