Press Release 25 July 2018 - United Overseas Bank (Malaysia) Bhd

Press Release 2018

UOB Malaysia issues RM600 million Basel III-compliant Tier 2 Subordinated Medium Term Notes

The Bank first tranche under its RM8.0 billion Senior and Subordinated Medium Term Notes Programme was 2.5 times subscribed

Kuala Lumpur, Malaysia, 25 July 2018 - United Overseas Bank (Malaysia) Bhd (UOB Malaysia) today announced the issuance of its RM600 million Basel III-compliant Tier 2 Subordinated Medium Term Notes (the Notes) at a fixed coupon rate of 4.80 per cent. The Notes are the first bond issuance under UOB Malaysia RM8.0 billion Senior and Subordinated Medium Term Notes Programme and are rated AA1 by RAM Rating Services Berhad.

Increased from an initial target of RM500 million, the issuance was 2.5 times subscribed with orders in excess of RM1.5 billion. Strong investor demand also saw the Notes priced at the lower end of the initial price guidance range 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.

Mr Wong Kim Choong, Chief Executive Officer, UOB Malaysia, said, We are pleased with the strong demand for UOB Malaysia debut offering under our 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 robust capital position and business fundamentals.

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

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¹The initial offer price was set at a range of between 4.80 per cent and 4.85 per cent.

For acquisitions. UOB is rated among the world top banks: Aa1 by Moody’s and AA- by Standard & Poor and Fitch Ratings respectively. In Malaysia, UOB Malaysia receives AAA/Stable/P1 financial institution rating from RAM Ratings.

Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues.

We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education. For further information, please visit www.uob.com.my.