KUALA LUMPUR (May 4): CIMB Group Holdings Bhd’s indirect 99.99%-owned subsidiary CIMB Bank Bhd will issue tomorrow a HK$610 million (about RM323.42 million) bond under CIMB Bank’s proposed debt scheme of up to US$5 billion (about RM20.59 billion), CIMB Investment Bank Bhd said.

CIMB Investment Bank, which is facilitating the US$5 billion debt scheme, said the HK$610 million medium term note (MTN) programme pays an annual interest rate of 0.88% and will mature on May 5, 2024.

CIMB Investment Bank did not say how CIMB Bank plans to use the proceeds from the HK$610 million bond issue.

The HK$610 million bond will be listed on Bursa Malaysia under the exempt regime, according to CIMB Investment Bank’s filing yesterday with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website.

Under Bursa’s exempt regime, CIMB Bank’s HK$610 million bond will be listed but not quoted for trading on the local bourse.

Dealers for the HK$610 million bond are The Hongkong and Shanghai Banking Corp Ltd (HSBC) and CIMB Bank’s Labuan offshore branch, according to CIMB Investment Bank.

"The notes are expected to be rated A3 by Moody’s,” CIMB Investment Bank added.

On Bursa today, CIMB Group shares were traded unchanged at RM4.13 at the time of writing, with a market value of about RM41.34 billion.

The group has 10.01 billion issued shares.