United Overseas Bank Malaysia Bhd (UOB Malaysia) issues its RM600 million Basel III-compliant Tier 2 Subordinated Medium Term Notes at a fixed coupon rate of 4.80 per cent The Notes are the first bond issuance under UOB Malaysia’s RM8 billion Senior and Subordinated Medium Term Notes Programme and are rated AA1 by RAM Rating Services Berhad.
The issuance was 2.5 times subscribed with orders in excess of RM 1.5billion, an increase of RM500 million from the initial target. Strong investor demand also saw the Notes priced at the lower end of the initial price guidance range with a fixed coupon rate of 4.80 per cent.
The net proceeds generated from the issuance is planned to be used for general business purposes.
UOB Malaysia chief executive officer, Wong Kim Choong stated that UOB is contented with the strong demand for UOB Malaysia’s debut offering under the RM8 billion Medium Term Notes Programme.
“The strong credit rating, tight pricing and the oversubscription of these Notes reflect the continued confidence of the investment community in UOB Malaysia’s robust capital position and business fundamentals.” he said.
The Notes are expected to be due in 2028 and callable after July 2023.
UOB Malaysia and HSBC Bank Malaysia Berhad are the joint lead managers of this transaction.
