UOB Malaysia issues RM600 million Basel III-compliant Tier 2 Subordinated Medium Term Notes

United Overseas Bank Bhd issuances’ RM600 million Basel III-compliant Tier 2 Subordinated Medium Term Notes at a fixed coupon rate of 4.80 per cent. The Notes are the first bond issuance under UOB Malaysia’s RM8.0 billion Senior and Subordinated Medium Term Notes Programme and are rated AA1 by RAM Rating Services Berhad.

The issuance was 2.5 times subscribed with orders in excess of RM1.5 billion, from its initial target of RM500 million. Strong investor demand also saw the Notes priced at the lower end of the initial price guidance range with a fixed coupon rate of 4.80 per cent. UOB Malaysia plans to use the net proceeds from the issuance for general business purposes.

Wong Kim Choong, Chief Executive Officer, UOB Malaysia, says, “We are pleased with the strong demand for UOB Malaysia’s debut offering under our RM8.0 billion Medium Term Notes Programme. The strong credit rating, tight pricing and the oversubscription of these Notes reflect the continued confidence of the investment community in UOB Malaysia’s robust capital position and business fundamentals.”

The Notes will be due in 2028 and callable after July 2023. UOB Malaysia and HSBC Bank Malaysia Berhad are the joint lead managers on this transaction.

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