Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 6): RHB Bank Bhd has successfully completed its second issuance of senior unsecured notes (senior notes) worth US$500 million, under its US$5 billion Euro Medium Term Note Programme.

The programme was established on Sept 23, 2014, read its filing to Bursa Malaysia today.

The senior notes were rated A3 by Moody's Investors Service Inc and BBB+ by Standard & Poor Global Ratings.

The senior notes, with tenure of five years, were priced at five-year US Treasury +137.5 bps or a yield of 2.503% and will pay a coupon of 2.503% per annum. The notes are also expected to be listed on the Singapore Exchange and the Labuan International Financial Exchange Inc.

This issuance of the senior notes marks RHB Bank as the only Malaysian issuer to have achieved the lowest coupon rate for a public USD five-year bond since January 2013, as well as the lowest-ever recorded coupon for a USD five-year bond.

With a diverse investor base across both the Asian and European regions, the issuance of the senior notes was 3.8 times oversubscribed, with 84% allocated to Asian investors and 16% allocated to European investors.

Fund managers were allocated 66% of the issue, while banks and insurance companies get 24% and 6% respectively. The remaining 4% were allocated to others.

RHB Bank will use the net proceeds from the issuance for general and working capital purposes.

RHB Investment Bank Bhd, Credit Suisse (Singapore) Ltd and The Hongkong and Shanghai Banking Corp Ltd are the joint lead managers and joint bookrunners for the issuance.

 

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