Photo by Sam Fong/The Edge
KUALA LUMPUR (June 29): RHB Bank Bhd has issued US$500 million senior notes, marking the fourth issuance from its US$5 billion Euro Medium Term Note programme established in September 2014.
It will use the proceeds from the issuance for working capital and other corporate purposes.
In a statement, RHB Bank said the issuance, with a tenor of five years, has attracted a diverse range of investors across both Asia and Europe.
The senior notes, rated A3 by Moody’s Investors Service Inc, were priced at 78 basis points over the five-year US Treasury yield or a yield of 1.658% and will pay a coupon of 1.658% per year. The notes will be listed on the Singapore Exchange Securities Trading Ltd and Labuan International Financial Exchange Inc.
“We had received strong feedback from investors prior to launching the senior notes and their confidence in RHB Bank’s credit was clearly reflected with the offering reaching a peak order book in excess of US$2.7 billion at final price guidance on June 22,” said RHB Banking Group managing director and group chief executive officer Datuk Khairussaleh Ramli.
By geographical distribution, Asian and European investors were allocated 83% and 17% of the senior notes respectively.
In terms of investors’ type, banks were allocated 48% of the issue, while asset managers and fund managers were allocated 35%. Sovereign wealth funds, insurance, and pension funds were allocated 16%, with the rest being allocated to private banks.
RHB Investment Bank Bhd, BofA Securities and The Hongkong and Shanghai Banking Corp Ltd acted as the joint global coordinators, joint lead managers and joint bookrunners for the issuance.
RHB Bank’s share price closed five sen or 0.92% lower at RM5.37 today, giving it a market capitalisation of RM21.53 billion.
