Hong Leong Bank Berhad has issued RM640 million in nominal value of Tier 2 subordinated notes as part of its ongoing capital management initiatives.
The issuance, completed on 26 June 2026 under HLB’s multi-currency Tier 2 subordinated notes programme (HLB T2 Programme), comprises two tranches.
The first tranche, known as Tranche 7 Series 1, involves RM350 million in nominal value with a tenure of 10 years and a non-call period of five years.
The second tranche, Tranche 7 Series 2, involves RM290 million in nominal value with a tenure of 12 years and a non-call period of seven years.
The notes carry coupon rates of 3.90% per annum for Tranche 7 Series 1 and 4.00% per annum for Tranche 7 Series 2, with coupon payments scheduled every six months.
The first tranche may be called on 26 June 2031 and every coupon payment date thereafter, while the second tranche has a call date of 27 June 2033 and every coupon payment date thereafter.
The issuance has been assigned an AA1 rating by RAM Rating Services Berhad.
HLB said proceeds from the issuance will be used for general corporate purposes, including working capital requirements, banking operations, refinancing of existing borrowings, subordinated debt and existing subordinated notes issued under the HLB T2 Programme.
