UOB Malaysia successfully prices RM1.0 billion Basel III-compliant Tier 2 Subordinated Medium Term Notes

The Bank’s debt offering upsized to RM1.0 billion following overwhelming response


Kuala Lumpur, 25 October 2022 – UOB Malaysia today announced that it has successfully priced RM1.0 billion Tier 2 Subordinated Medium Term Notes (MTN) due in October 2032 and callable in October 2027 at a fixed coupon rate of 4.9 per cent per annum. Despite prevailing volatile financial markets and rising rates environment, the Bank successfully priced one of the largest Ringgit-denominated Basel III-compliant subordinated Tier 2 to date.

The subordinated debt, rated AA1 by RAM Rating Services Berhad, was privately placed to more than 20 high quality institutional investors including insurance companies, fund managers, statutory bodies, banks and private banks. The robust demand from investors also saw the issuance size increased from the initial target of RM500 million to RM1.0 billion.

Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia said, “The successful transaction, reflected by the strong rating and the tight pricing we achieved, is testament to UOB Malaysia’s solid credit profile and robust business fundamentals. Despite the volatile market environment, we received investors’ positive response to the Bank’s Basel III-compliant Tier 2 MTN, leading to the largest local currency-denominated issuance thus far.”

CIMB Investment Bank, HSBC Bank Malaysia and UOB Malaysia acted as Joint Lead Managers for this transaction.