Public Bank issues fifth tranche of RM10 bil medium-term notes

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KUALA LUMPUR (Oct 29): Public Bank Bhd today announced the fifth tranche of its RM10 billion subordinated medium-term notes (sub-notes) programme that was set up in 2013.

In a filing with Bursa Malaysia, the bank said the 10-year subordinated notes under this tranche amounts to RM1 billion. They can only be redeemed after the fifth year and has a coupon rate of 4.70% per year.

“The issuance of the fifth (5th) tranche of Sub-Notes under the Sub-Notes Programme is not expected to have any material effect on the earnings of PBB and the PBB Group, the consolidated net assets of the PBB Group and the dividend rate of PBB,” the group said. 

In July 2013, Public Bank said it will issue up to RM10 billion worth of medium-term notes to meet local regulators' capital-adequacy requirement, and that the tenure of the sub-notes programme is up to 30 years from the date of first issuance of sub-notes.

Bond-rating firm RAM Rating Services Bhd has an AA1 rating on Public Bank notes.

Shares price of Public Bank traded four sen or 0.16% lower to close at RM24.58, valuing the group at RM95.42 billion. The counter saw 4.93 million shares exchanging hands.