Business

RHB Bank issues RM750mil medium-term notes

KUALA LUMPUR: RHB Bank Bhd has issued the second tranche of RM750mil subordinated notes under its RM5bil multi-currency medium-term note (MCMTN) programme.

In a filing with Bursa Malaysia, it said the 10-year notes, rated AA3 by RAM Rating Services Bhd, had a fixed coupon rate of 4.82% per annum (payable semi-annually in arrears throughout the entire tenure) and were non-callable for the first five years.

RHB Bank said the proceeds raised would be used for its general working capital and other corporate purposes.

The subordinated notes will qualify as Tier 2 capital of RHB Bank subject to compliance with the requirements as specified by Bank Negara.

RHB Bank completed its first issuance of RM500mil subordinated notes under the MCMTN programme in May 2015.

Those notes were also issued for a tenure of 10 non-callable five years but with a fixed coupon rate of 4.75% per annum.

RHB Bank received the Securities Commission’s nod for the MCMTN programme in February 2014 following Bank Negara’s approval.