PUBLIC BANK SELLS RM2BIL OF MEDIUM-TERM SUB-NOTES

KUALA LUMPUR – Public Bank Bhd (PBB) has issued the fourth and biggest tranche so far – amounting to RM2bil – under its subordinated medium-term notes (sub-notes) programme set up in 2013.

The latest issuance has a higher value than the combined value of all sub-notes issued under the programme so far, which amounts to RM1.95bil. It has also been more than three years since the bank made any offering under this programme of up to RM10bil in nominal value.

In a filing with Bursa Malaysia, the bank said the 10-year notes, which can be redeemed only after the fifth year, had a coupon rate of 4.85% per year.

The proceeds of the sub-notes will be used for PBB’s working capital, general banking and other corporate purposes.

RAM Rating Services Bhd has assigned AA1 rating to the sub-notes programme of up to RM10bil in nominal value, which was set up in July 2013. The programme has a tenure of up to 30 years.

The first tranche of RM1bil was issued in September 2011 with a coupon rate of 4.8% per annum, followed by a second tranche of RM450mil in October 2013 with a coupon rate of 4.77% and a third tranche of RM500mil the following month with a coupon rate of 4.73%,

The bank has subsequently set up a sukuk murabahah programme under unit Public Islamic Bank for the issuance of up to RM5bil nominal value senior and/or subordinated sukuk and upsized the upper limit of a senior medium-term notes programme from RM5bil in nominal value to RM20bil.

It has also since undertaken a renounceable rights issue exercise to raise up to RM5bil.

– ANN

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