KUALA LUMPUR (July 25): United Overseas Bank (Malaysia) Bhd has successfully issued its 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 Bhd, the bank said in a statement today.

Increased from an initial target of RM500 million, the issuance was 2.5 times subscribed with orders in excess of RM1.5 billion.

UOB Malaysia Chief Executive Officer Wong Kim Choong said the over oversubscription reflected the strong demand for UOB Malaysia’s debut offering under its 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,” he said.

The strong investor demand also saw the notes priced at the lower end of the initial price guidance range 1 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,” he added.

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