Hong Leong re-weights capital ratios

Malaysia''s Hong Leong launches debut sub debt offering to balance its capital ratios.

Barclays and BNP Paribas have priced a $200 million 10-year non-call five year lower tier 2 subordinated debt issue for Hong Leong Bank at the mid-range of the deal's revised indicative range.

Initially marketed to Asian investors at about 80bp over mid-swaps, guidance was cut to 75bp-80bp over before being unveiled to UK investors in London.

With an issue price of 99.848%, the notes carry a coupon of 5.25% to yield 78bp over five-year mid-swaps, or 121.7bp over five-year US Treasuries. Fees are 25bp.

The BBBBaa2 rated Fitch and Moody's deal's most obvious comparison is Public Bank's 2014 callable 2009-subordinated bond. This...

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