RHB to utilise RM500 mil subordinated notes for working capital

KUALA LUMPUR (April 28): RHB Bank plans to utilise proceeds raised from the issuance of subordinated notes for general working capital and other corporate purposes.

The bank today issued subordinated notes of RM500 million in nominal value under the Multi-Currency Medium Term Note Programme.

The subordinated notes, rated AA3 by RAM Rating Services Bhd, were issued for a tenure of 10 non-callable five years with a fixed coupon rate of 3.65% per annum, payable semi-annually in arrears throughout the entire tenure.

It will qualify as Tier 2 capital of the bank subject to compliance with the Capital Adequacy Framework for Banks (Capital Components) issued by Bank Negara Malaysia on Dec 9, 2020.