UOB Malaysia successfully prices RM750 million Basel III-compliant Tier 2 Subordinated Medium Term Notes
The Bank’s debt offering receives strong demand with oversubscription of more than two times
Kuala Lumpur, 29 July 2020 – United Overseas Bank (Malaysia) Bhd (UOB Malaysia) today announced that it has successfully priced an offering of RM750 million Tier 2 subordinated medium term notes due August 2030 and callable in August 2025 at a fixed coupon rate of three per cent per annum. The pricing is at the tight end of price guidance and is also the lowest coupon ever achieved to-date for a Ringgit-denominated Basel III-compliant subordinated Tier 2 transaction.
Rated AA1 by RAM Rating Services Berhad, the subordinated debt offering saw strong demand, with the issuance size increased from the initial target of RM600 million to RM750 million and oversubscribed more than two times. Orders in excess of RM1.5 billion were received from 25 quality institutional investors, including insurance companies, fund managers, banks and private banks.
Mr Wong Kim Choong, Chief Executive Officer, UOB Malaysia said, “We are encouraged by investors’ response to the Bank’s Basel III-compliant Tier 2 Subordinated Notes and the pricing we achieved. The successful transaction reflects investors’ confidence of UOB Malaysia’s strong credit profile and robust business fundamentals against the backdrop of a challenging business environment and the impact of the COVID-19 pandemic. We will continue to deepen our presence and to sharpen our capabilities in support of our customers.”.
CIMB Investment Bank Berhad, HSBC Bank Malaysia Berhad and UOB Malaysia acted as Joint Lead Managers for this transaction.