Monday, 14 March 2011

Hong Leong Bank gets SC nod to issue up to USD300m bonds

Hong Leong Bank gets SC nod to issue up to USD300m bonds
Written by Joseph Chin of theedgemalaysia.com
Thursday, 10 March 2011 18:28


KUALA LUMPUR: HONG LEONG BANK BHD [] has received approval for its proposed issue of up to US$300 million senior unsecured bonds from the Securities Commission.

“The proceeds from the issuance of the senior bonds will be used for working capital and general banking purposes,” it said on Thursday, March 10.

Barclays Bank PLC, The Royal Bank of Scotland plc and Standard Chartered Bank are joint lead managers and bookrunners for the senior bonds.

CIMB Investment Bank Bhd and Hong Leong Investment Bank Bhd have been appointed co-managers.


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Moody's assigns A3 to Hong Leong Bank's proposed notes
Written by theedgemalaysia.com
Thursday, 10 March 2011 11:56


KUALA LUMPUR: Moody's Investors Service has assigned an A3 foreign currency rating to HONG LEONG BANK BHD []’s proposed issue of senior debt notes. The rating outlook is stable.

The ratings agency said on Thursday, March 10 the exact amount of the issuance has yet to be decided.

The notes will represent an unsecured, unsubordinated obligation of Hong Leong Bank. The issuance will be subject to a negative pledge.

Hong Leong Bank’s A3 foreign currency senior unsecured rating is driven by its C-bank financial strength rating (BFSR), which maps to a baseline credit assessment (BCA) of Baa1, as well as the imputed systemic support.

The bank's ratings are underpinned by its: (1) established consumer and middle-market banking franchise (which comprises a well-to-do Chinese community), (2) conservative management, (3) very high levels of capital and liquidity, and (4) efficient operations.

In addition, Moody's notes that the bank's asset quality, while improving, is still moderate when compared with global banks of similar ratings.

The rating also incorporates the inherent market risks.

As the sixth-largest Malaysian bank in terms of assets, Moody's believed that Hong Leong Bank enjoyed a very high probability of systemic support, leading to two notches of uplift for its A2 long-term global local currency (GLC) deposit rating from its Baa1 BCA.

The bank’s long-term senior unsecured foreign currency debt rating is similar to Malaysia's A3 foreign currency bond ceiling.

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