RHB Bank announced the issuance of subordinated notes of RM500.0 million in nominal value under the MCMTN Programme.
The Subordinated Notes, rated AA2 by RAM Rating Services Berhad, is issued for a tenure of 10 non-callable 5 years with a fixed coupon rate of 4.40% per annum, payable semi-annually in arrears throughout the entire tenure.
They will qualify as Tier 2 capital of RHB Bank subject to compliance with the requirements as specified in the Capital Adequacy Framework for Banks (Capital Components) issued by Bank Negara Malaysia on 9 December 2020.
RHB said the proceeds raised from the Subordinated Notes will be utilised for general working capital and other corporate purposes.
In addition, RHB Bank had also fully redeemed its existing RM750 million in nominal value of subordinated notes issued on the first call date in September 2022
