CIMB Group to redeem outstanding debt under RM10b bond scheme

(Photo by Wikimedia)

(Photo by Wikimedia)

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KUALA LUMPUR (April 13): CIMB Group Holdings Bhd intends to redeem the outstanding RM1 billion worth of debt under the financial services provider’s RM10 billion bond scheme on the outstanding amount’s first optional redemption date on May 25, 2021.

"Please be informed that, pursuant to clause 6.5 of the trust deed dated May 6, 2016, CIMB Group intends to redeem the outstanding RM1 billion capital securities (stock code: PZ160007) in whole on the first optional redemption date of May 25, 2021 at the redemption amount,” said CIMB Investment Bank Bhd, which is advising CIMB Group on the RM10 billion nominal value additional tier-one capital securities programme.

CIMB Investment Bank said this in a filing yesterday evening on Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website.

On April 20, 2016, news reports quoting RAM Rating Services Bhd’s note on that day reported that CIMB Group had proposed to raise RM10 billion under the additional tier-1 capital securities programme to strengthen the financial services entity's capital structure.

It was reported that RAM had assigned an "A1/Stable" rating to CIMB Group's debt securities.

CIMB Group said on its website that CIMB Investment Bank is the principal adviser for the RM10 billion nominal value additional tier-one capital securities programme .

Pacific Trustees Bhd is the trustee for the corporate exercise, CIMB Group added.

CIMB Group on April 4, 2016 obtained approval from BNM to establish the RM10 billion bond programme, the banking group said.

On Bursa Malaysia today, CIMB Group’s share price had risen two sen or 0.47% to RM4.27 at 10.11am , giving it a market capitalisation of about RM42.36 billion.

CIMB Group has 9.92 billion issued shares, according to its latest quarterly financial report.