KUALA LUMPUR (Oct 14): Hong Leong Bank Bhd (HLB) on Friday (Oct 14) issued RM400 million worth of Additional Tier 1 capital securities (HLB Capital Securities) under its RM10 billion multi-currency Additional Tier 1 capital securities programme (HLB AT1 programme).

The HLB Capital securities are perpetual and non-callable for five years, with a distribution rate of 4.7% per annum. The distribution period is six months. 

The bank’s filing with the bourse showed that the optional redemption date is on Oct 14, 2027, and every distribution payment date thereafter. 

The proceeds from this bond will be used to refinance an existing tranche of HLB Capital Securities with a principal amount of RM400 million issued on Nov 30, 2017 under the HLB AT1 programme.

This is also to meet the Additional Tier 1 capital requirements under the Capital Adequacy Framework (Capital Components) issued by Bank Negara Malaysia (BNM) on Dec 9, 2020.

The bond has been assigned an A1 rating by RAM Rating Services Bhd. 

Shares of HLB rose 12 sen or 0.59% to RM20.58 on Friday’s closing, valuing the bank at RM44.44 billion. The stock is currently trading at a historical price-to-earnings ratio of 12.77 times.