Press Release 8 May 2015 - United Overseas Bank (Malaysia) Bhd

Press Release 2015

UOB Malaysia RM1 billion Basel III-compliant Tier 2 Subordinated Bonds

First foreign bank incorporated in Malaysia to issue a RM-denominated Basel III-compliant Tier 2 subordinated bonds

08 May 2015

United Overseas Bank (Malaysia) Bhd (UOB Malaysia) issued an offering of RM1 billion 4.65% subordinated bonds due 2025 callable in May 2020.

UOB Malaysia is the first foreign bank incorporated in Malaysia to issue a Ringgit-denominated Basel III-compliant Tier 2 subordinated bond in the local market.

The subordinated bonds received strong investor demand, which resulted in the issue size to increase from the initial target of RM500 million to RM1 billion. The transaction was 2.2 times subscribed, with orders of RM2.2 billion from a broad range of investors.

The subordinated bonds were priced at a fixed coupon rate of 4.65 per cent per annum, representing the lowest coupon achieved on a Basel III-compliant subordinated Tier 2 transaction in the Ringgit bond and Sukuk market to date.

The subordinated bonds are rated AA1 by RAM Rating Services Berhad.

Proceeds from the issuance will be used for general corporate purposes.

CIMB Investment Bank Berhad, HSBC Bank Malaysia Berhad and UOB Malaysia Berhad acted as joint lead managers on this transaction.

Quote by Mr Wong Kim Choong, Chief Executive Officer of UOB Malaysia:

"We are pleased to be the first foreign bank incorporated in Malaysia to issue a benchmark Basel III-compliant Tier 2 subordinated bond in the local market this year. This transaction was well received by a diverse base of institutional investors in Malaysia, affirming investors' strong support for UOB Malaysia."